An Economics lecturer at the University of Ghana, Professor William Baah Boateng, has issued a direct challenge to Ghanaian importers and traders benefiting from the appreciating cedi.
He says they must reflect the gains of the local currency in the prices of goods or risk exposing a double standard.
Speaking on Joy News’ PM Express Business Edition on Thursday, May 8, Prof. Baah Boateng questioned the logic of business owners who hike prices in anticipation of cedi depreciation but fail to lower them when the cedi gains strength.
“I will be very happy if he says when it [the cedi] goes down, he will also reduce his prices to reflect the same level,” he said in response to comments from a representative of the Ghana Union of Traders Association (GUTA), who had earlier expressed delight over the cedi’s appreciation.
“But if it’s not going to reflect in the domestic market at the speed the cedi is appreciating, then we have to be very careful,” he warned.
The economist described a common market behaviour where importers assume the worst when the cedi weakens and price their goods accordingly.
“When the cedi is appreciating, importers will by all means increase the price in anticipation of further depreciation,” he said.
“And I expect that if it is appreciating, then they should reduce the price in anticipation of further appreciation.”
Prof. Baah Boateng’s remarks come amid growing public frustration that the strengthening cedi is not translating into cheaper goods and services.
He argued that true market discipline should apply both ways.
“If you’re going to adjust prices upwards when the currency is falling, then do the same when it’s rising. Don’t use one standard for losses and another for gains.”
He also defended the Bank of Ghana’s current cautious approach, praising its posture in the current environment.
“What I see the central bank doing is watching and not just doing anything,” he noted. “They’re seeing how things unfold, and that’s wise.”
The economist used the opportunity to stress that economic realities do not play out in a vacuum.
“There’s no economy where demand and supply alone determine everything,” he said. “There is always some level of regulation in every market.”
While acknowledging some improvements in the government’s fiscal discipline, he clarified that the fundamentals of the economy remain mostly the same.
“When you look at the structure of the economy, we still have the same structure as it used to be last year,” he said.
Still, he acknowledged efforts to control spending. “Government has tried as much as possible to manage expenditure,” he observed.
“This is not cutting expenditure, but making sure the spending is tied to economic activity.”
He argued that such fiscal management helps stabilise the economy.
“If the fiscal is putting its acts together, the central bank won’t need to come in to clear the mess. It gives them peace of mind to focus on monetary policy and exchange rate stability.”
Prof. Baah Boateng’s message was clear: the cedi’s appreciation must not be treated as a PR boost while traders continue to operate on fear-driven pricing models. If the market is fair, price reductions must follow currency gains.