An economics lecturer at the University of Ghana, Professor William Baah Boateng, has called on importers and traders to reflect the recent appreciation of the Ghanaian cedi in the pricing of goods and services.

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Speaking on Joy News’ PM Express Business Edition on Thursday, May 8, Prof. Baah Boateng questioned why business operators who are quick to increase prices when the cedi depreciates do not take similar action to reduce prices when the local currency strengthens.

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“I will be very happy if he says when it goes down, then he will also reduce his prices to reflect the same level,” he said, reacting to comments from a representative of the Ghana Union of Traders Association (GUTA), who had welcomed the cedi’s gains.

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He cautioned that failing to align domestic prices with the cedi’s upward performance could erode public trust. “But if it’s not going to reflect on the domestic market at the speed the cedi is appreciating, then we have to be very careful,” he warned.

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Highlighting a persistent market trend, the economist noted that many importers often anticipate further cedi depreciation and price their goods accordingly — but do not apply the same logic when the currency appreciates.

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“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.”

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His remarks come at a time when many consumers have expressed concern that the strengthening cedi is not being reflected in market prices. Prof. Baah Boateng argued that market integrity demands consistency.

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“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.”

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He also spoke positively about the Bank of Ghana’s handling of the current economic situation, particularly its cautious approach to policy amid shifting conditions.

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“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.”

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Prof. Baah Boateng added that market forces alone do not drive outcomes in any economy, stressing the role of regulation. “There’s no economy where demand and supply alone determine everything,” he said. “There is always some level of regulation in every market.”

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Although he acknowledged some progress in the government’s effort to manage its finances, the lecturer emphasized that the overall structure of the economy remains largely unchanged.

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“When you look at the structure of the economy, we still have the same structure as it used to be last year,” he observed.

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Still, he commended the government’s recent focus on expenditure management. “Government has tried as much as possible to manage expenditure,” he said. “This is not cutting expenditure, but making sure the spending is tied to economic activity.”

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He believes that such fiscal prudence reduces pressure on the central bank. “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.”

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