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We Can’t Reduce Prices Of Goods Now – Traders
 
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28-Sep-2014  
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The Ghana Union of Traders Association (GUTA) has disclosed that its members will have to recover the losses they incurred during the depreciation of the cedi before they can reduce prices of their goods.

According to the Association, some of its members lost huge sums of money during the Cedi depreciated massively against the major trading currencies, while others had their businesses fold up.

Since most of the traders import majority of their wares, the situation had massive impact on the prices of goods and services, while inflation also hit record highs of about 15.9%.

Until recently, the Cedi had depreciated about 30% against the US dollar.

But the cedi in recent times seems to have stabilized against the dollar and other major foreign currencies hence a call by Ghanaians for a reduction in general prices of goods.

Speaking in an interview with Citi News, GUTA president George Ofori said the dynamics of trading doesn’t allow for an immediate reduction.

He said, “they should also take into cognizance where we are coming from because as at January, February the cedi was 2.37 until it came to where we were.”

He argued that those calling for reduction in prices do not understand the dynamics of trading saying “if they understand it, I don’t think they would jump to the defense of such an issue.”

“Already people have lost their capital and their businesses as a result of the depreciation of the cedi to the extent that when it was 4 cedis and there are still stocks in someone’s shop, so how do you expect that person to as at now reduce the price because we think the dollar has gone down meanwhile the procurement was done when the cedi to the dollar was 4 cedis,” the GUTA president said.

Meanwhile, government has said they can’t force traders to cut down prices.
 
 
 
Source: Citifmonline.com
 
 

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