The Chairman of the Federation of Kumasi Traders (FKT), Nana Akwasi Prempeh, has urged the citizenry to exercise patience regarding calls for the downward adjustment of prices of goods and services in the face of the appreciation of the local currency – the Cedi.
He stressed that price adjustment should be systematic and determined by the market forces to allow demand and supply to control the market naturally.
Nana Akwasi Prempeh, in an interview with Kumasi-based radio station, Otec FM, in an obvious reaction to the plea by the GUTA President, Dr. Obeng, to traders to reduce prices, however, acknowledged that the appreciation of the Cedi comes as good news to Traders, but disagrees with the call to adjust prices outright.
He mentioned inflation, cost of borrowing, Cedi depreciation, freight and import duties and to some extent, government policies as factors of high cost of goods to be considered.
The Chairman explained that the appreciation of the Cedi began just some fortnight ago, without guarantee of its stability, hence business owners have to study the trend of the appreciation before taking a “decisive decision”.
He noted that though the Cedi keeps appreciating with reduction in inflation, interest rate is stagnant.
Nana Akwasi Prempeh admitted Traders’ chequered history of not swiftly adjusting prices when the Cedi appreciates, as they would have done when it depreciates and indicated that only a few Traders have so far adjusted prices of goods. He, however, argued that the market itself would compel traders to reduce prices.
Nana Akwasi Agyeman argued that traders are also Consumers and patronise other goods, hence Traders will also be happy if prices of goods and services are adjusted downward.
On the sustainability of the Cedi appreciation, the Chairman urged the government to support local manufacturers as well as augmenting exportation of their goods, to ensure the sustainability of the appreciation of the cedi.
From Oswald Pius Freiku, Kumasi
