Players in Ghana’s business community say the recent appreciation of the cedi against major currencies, especially the U.S. dollar, is welcome but will not lead to an immediate drop in the prices of goods and services.
Their explanation stems from the fact that many businesses are still selling goods imported at higher exchange rates. These older stockpiles, acquired when the cedi was weaker, must be sold off before any new pricing adjustments reflecting the cedi’s current strength can be made.
Speaking on behalf of the business sector, the Chief Executive Officer of the Association of Ghana Industries (AGI), Seth Twum-Akwaboah, and the CEO of the Ghana National Chamber of Commerce and Industry (GNCCI), Mark Badu-Aboagye, emphasized that pricing in Ghana’s market is influenced by more than just currency movements. Transportation costs, import duties, and other operational overheads all factor into what consumers eventually pay.
Their position was further backed by the Dean of the University of Cape Coast School of Business, Professor John Gatsi, who said a noticeable reduction in prices will only occur if the cedi maintains its strength over a sustained period.
“A meaningful reduction in prices would only occur if the cedi’s appreciation was sustained over a longer period, to give businesses the confidence to revise their pricing structures accordingly,” he noted.
The cedi has shown remarkable strength in recent weeks. According to Bank of Ghana data, it appreciated from GH¢15.53 to GH¢13.09 per dollar (buying rate) between March 12 and May 12, 2025. Against the pound sterling, the buying rate improved from GH¢20.09 to GH¢17.42, and from GH¢16.96 to GH¢14.74 against the euro over the same period.
Analysts, including Databank Research, credit this resilience to strong Bank of Ghana interventions and improved sovereign credit ratings. Bloomberg also ranked the cedi as the world’s best-performing currency in May 2025.
Despite the optimism, traders remain cautious. The Ghana Union of Traders’ Associations (GUTA), however, has called on businesses to pass on some of the benefits of the cedi’s appreciation to consumers.
GUTA has urged “the trading community to adjust prices of goods and services to share the significant gains made by the appreciation of the cedi against the major trading currencies and bring some relief to the consuming public.”
