Bank of Ghana Governor Dr. Johnson Asiama has assured consumers that prices of goods and services will soon decrease to reflect the recent gains in the cedi’s value.
Speaking after the Monetary Policy Committee meeting on May 23, Dr. Asiama explained that the cedi’s appreciation will gradually filter through the economy, easing import-related cost pressures and leading to price adjustments in the coming months.
“You can understand that some people stock their goods at a higher exchange rate. So naturally, even with the appreciation – it takes a while for you to see that adjustment. However, rest assured that you will see the adjustment certainly so long as there is competition, so long as it is not a monopoly, and we will see that kind of phenomenon very soon.”
He noted that while it may take some time for prices to adjust, retailers and importers are expected to reflect the improved performance of the cedi in their pricing decisions.
Dr. Asiama also downplayed concerns that the cedi’s recent rally could undermine Ghana’s export competitiveness, stating that the current gains do not pose a structural risk to the economy’s trade performance.
“Much as you want to have cedi stability in nominal terms, the important thing here is to ensure that in real terms, the cedi is not appreciating persistently. We think that where we are now, we don’t have that problem of real appreciation that would adversely impact our competitiveness.”
The cedi has surged to its strongest performance against major trading currencies, appreciating by 24.1% against the US dollar, 16.2% against the British Pound, and 14.1% against the Euro.
Dr. Asiama’s assurance comes as retailers and importers are under pressure to consolidate macroeconomic stability by passing on the benefits of the cedi’s appreciation to consumers.
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