As Ghana’s cedi continues to strengthen, University of Ghana economist Professor William Baah Boateng has called on traders and importers to reflect these gains in their pricing strategies, challenging the double standards often seen in the marketplace.
Speaking on Joy News’ PM Express Business Edition on Thursday, May 8, Prof. Baah Boateng highlighted a longstanding concern: the tendency for traders to quickly raise prices when the cedi depreciates but delay or ignore price cuts when the local currency recovers.
“Market Fairness Requires Consistency”
“It’s only fair that if you’re quick to increase prices when the cedi falls, you should be equally quick to reduce them when it appreciates,” he argued. “Otherwise, you risk operating on a double standard that only hurts consumers.”
The professor’s comments came in response to a Ghana Union of Traders Association (GUTA) representative who had praised the cedi’s recent recovery. Baah Boateng pressed traders to demonstrate good faith by passing on the benefits of a stronger currency to the public.
Exchange Rate Gains Must Reach Consumers
Baah Boateng emphasized that a truly competitive market should reward consumers when economic fundamentals improve, not just burden them during downturns.
“If you’re pricing in fear of future depreciation, you should also price in optimism when the cedi gains ground,” he noted, adding that traders should avoid the trap of overestimating risk at the expense of fairness.
Broader Economic Context
While acknowledging the government’s efforts to control spending and stabilize the macroeconomic environment, Prof. Baah Boateng warned that the structure of Ghana’s economy remains largely unchanged, making consistent policy discipline crucial.
“Fiscal discipline is key,” he said. “If the government keeps its spending in check, it gives the central bank the breathing room to focus on monetary policy and exchange rate stability.”
A Call for Transparency
The economist concluded by urging businesses to be transparent and fair in their pricing, reinforcing the principle that market gains should not be a one-way street.
