Economists have called on businesses to adjust the prices of goods and services to the value of the cedi that has remained relatively stable this week, which is expected to enhance their competitiveness in the market.
Market information released during the week shows that the cedi has provided much of the gains it had made in recent months, thus bringing relief for import costs, and some relief for consumers and businesses. The Bank of Ghana’s rates on the interbank market were more favourable than the average rates on some forex bureaus.
The Bank of Ghana confirmed that the exchange rate stability is one of the key elements which have contributed to the overall macroeconomic recovery. The Ministry of Finance has also stated that fiscal discipline and continuous economic reforms are boosting investor confidence and market sentiment.
Economic analysts attribute the improvement of the performance of the cedi to the reduction of imported inflation, especially for products that have a high foreign exchange demand like fuel, pharmaceuticals, electronics and other consumer goods.
Other traders, however, note that as existing stock bought on higher exchange rates the retail prices could not decrease right away. Consumer groups have however urged businesses to progressively share the advantages of the improved cedi with the public if possible.
To ensure the stability of the currency, continued prudent fiscal management, high foreign exchange reserves and continued trust in the Ghanaian economy will be needed, according to economists.
By; Gertrude Darkoa