'Prices will only fall if gains are sustained' - GUTA boss defends market response

The president of the Ghana Union of Traders’ Associations (GUTA) says prices remain high. This is despite recent gains in the cedi. The reason is that traders lack trust in these gains.

Dr. Joseph Obeng spoke on JoyNews’ PM Express on May 12. He explained that traders are cautious due to past experiences. When the cedi appreciates, they see temporary gains that do not last.

Traders often ask him if price reductions will be permanent. GUTA recently urged traders to reflect the cedi’s appreciation in their prices.

However, Dr. Obeng admitted that traders are hesitant. They fear history may repeat itself with price increases again. He stressed the need to maintain currency gains for lasting benefits.

He emphasized that it’s crucial to focus on sustainability and predictability now. Government and the Bank of Ghana must work together to keep these gains steady.

In response to a question about market prices, Dr. Obeng said past events influence current decisions. Traders are not ready yet; they want to see if this trend is real.

He clarified this hesitation isn’t about unwillingness but protecting businesses from shocks. If the government implements prudent measures, then stability can be maintained.

Dr. Obeng linked stable currency to broader economic recovery plans. A stable exchange rate can help reduce inflation and lower interest rates.

This stability can improve other indicators vital for business success, he noted. He views this moment as an opportunity for growth and productivity enhancement.

He stressed the importance of leveraging current gains for future success. If stability boosts local industry competitiveness, Ghana could achieve true economic recovery.

Using currency stability effectively can lead to enhanced productivity and competitiveness, he concluded.