Traders don’t trust the current situation – KNUST lecturer explains price standoff

The Ghanaian cedi has recently gained against major foreign currencies. However, many traders are not lowering their prices. This situation has sparked debate and concern.

Dr. Owoahene Acheampong, a lecturer at KNUST, explains this reluctance. He cites a crisis of confidence in the government's economic management. Traders doubt the sustainability of the cedi's rebound.

Dr. Acheampong said, “Many traders see the cedi’s appreciation as cosmetic.” He believes it should lead to price reductions. However, traders want to monitor the situation for 60 days first.

His comments follow a meeting between the Minister of Trade and GUTA leaders. They agreed to review prices after 60 days if the cedi remains strong.

The cedi has shown signs of recovery against the US dollar. This follows months of sharp depreciation that increased inflation and prices.

Key factors for this recovery include tighter monetary policy and improved foreign exchange inflows. The IMF program also plays a role in the currency's performance.

Despite these improvements, Dr. Acheampong notes caution among traders. They are wary of what they see as temporary gains due to past volatility.

Traders fear that if they lower prices now, they could face losses later if the cedi depreciates again. This mistrust highlights a broader challenge: restoring long-term confidence in Ghana’s economy.