Cedi’s rise should trigger market relief – GUTA President urges VAT and utility reforms

Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), is optimistic about the cedi's recent appreciation against the US dollar. He believes this change will soon affect market prices.

“We have gained significantly, and it will reflect in the market soon,” he said during an interview on TV3’s Key Points programme. He noted that there has been stability before a sharp decline in the dollar's value.

Traders can stabilize prices if they respond wisely to this currency shift. “If you are a retailer, you should have sold some goods by now,” he advised. Selling some goods and buying new ones can help maintain reasonable prices.

However, Dr. Obeng warned that the cedi's strength alone won't provide long-term relief. Other economic factors must also be addressed, particularly Value Added Tax (VAT) and utility tariffs.

“The cedi's strength cannot act alone; it needs VAT reforms,” he emphasized. He pointed out that there is a cascading effect related to VAT changes.

He also urged the government to work with the Public Utilities Regulatory Commission (PURC). “Utility bills have increased, and we need to address this issue,” he stated.

The government should discuss these matters with PURC since they previously cited forex rates for price increases. “If the dollar is depreciating, there’s no reason for further increases,” he concluded.