Anthony Kwesi Ashun, who is a graduate in MBA finance and passionate about macroeconomic justice, financial education, and creating practical solutions for emerging economies has shared his succinct views on Ghana’s current economic reality. He began by saying, it is a great achievement to see the Ghanaian currency appreciate approximately 33% in a space of one month. However, the cedi’s gain have an inverse relationship with the market reality. Prices remain sticky, there is no economic relief for consumers, and the cost of living is on the rise. He admitted that this contradiction raises critical questions: why is the rising cedi having less economic relief on citizens? Is the currency gain a consumer pain? What relevance does the cedi appreciation hold if prices remain unchanged? In his submission, he continued to elaborate that an appreciating currency signals cheaper imports and, in turn, lowers the prices for goods and services. The cedi appreciation should translate into more purchasing power, lower costs for businesses, and ultimately, relief for consumers. That is, it should have a positive correlation with prices. A few among the many factors contributing to this mismatch are price stickiness, uncertainty about the sustainability of the cedi appreciation, and profit-driven market behavior.
Anthony highlighted that price stickiness is associated with sellers’ unwillingness to lower prices. He asserted that, since the cedi gained approximately 33% value in the past 5 weeks, it is expected that sellers will purchase one-third more of the usual commodities they purchase at the international and domestic markets today than they could yesterday, using the same amount of money. Meaning, they are using less money today to purchase the same quantities they purchased yesterday. Logically, salespersons have full responsibility to reduce prices. But what we are witnessing instead is a deliberate decision by many sellers to maintain old price levels. What is their justification? The need to “clear old stock” purchased at a weaker cedi. This argument, however, does not hold water, especially when we consider that these same traders are quick to raise prices at the slightest depreciation of the currency—often with immediate effect and without waiting to exhaust old inventory. According to him, this double standard is not just economically unjust; it’s exploitative. It allows traders to accumulate enormous profits at the expense of struggling consumers. If sellers are swift to increase prices when the cedi weakens, they must be equally swift to reduce them when the cedi strengthens. Anything less is opportunistic profiteering.
In his presentation, Anthony highlighted that the uncertainty surrounding the durability of the cedi’s appreciation is a factor affecting unchanged prices. Businesses sense the fear of the cedi appreciating for a short term, and they are hesitant to adjust prices downward only to reverse it a few weeks later. Traders are curious to know the policies initiating the rise of the cedi and the necessary measures to sustain it. He indicated that some businessmen are suspecting the government is injecting foreign reserves into the system rather than structural reforms.
These uncertainties have fueled market panics and hesitancies. Anthony stated, once business owners become securely convinced that the currency’s appreciation is driven by the government’s monetary and fiscal policies—such as improved exports, remittance inflows, debt restructuring, and better inflation management—they will overcome their insecurities and be willing to adjust prices instantly. “Confidence in long-term cedi stability is crucial in unlocking price flexibility”, he said.
Furthermore, profit maximization and market exploitation are the most frustrating behaviors traders have demonstrated in this situation.
Their deliberate refusal to lower prices, even in the midst of lower import and operational costs, signals a deliberate attempt for profit maximization while neglecting the financial hardship of consumers. With prices still unchanged, most traders are earning close to 50% more profits than their previous margins. These gains are not driven by increased productivity but by the exploitation of the price gap. “This is not just economically inefficient but unethical business practice”, he added.
A CALL TO ACTION
Anthony Kwesi Ashun highlighted that, despite the government’s competence and proactive measures to stabilize the economy, they will fail if the private sector actors are reluctant to align with national goals. He said, the pursuit of abnormal profit maximization undermines government policies and regulations meant to improve living standards. Through strategic and targeted price mechanisms, the government must consider intervening since market players are reluctant to adjust prices responsibly. This may include monitored pricing for essential goods, incentives for businesses that align with fair pricing practices, penalties for those engaging in exploitative pricing, and audits of importers to track if forex savings are passed to consumers.
Through detailed case studies and real-world examples, he suggested that transparency is required to boost investor confidence. The Bank of Ghana and the Ministry of Finance must communicate the key drivers that are influencing the appreciation of the cedi and indicate the policies in place to sustain it in the long term. This will encourage price adjustment across the country.
CONCLUSION
In his closing remark, Anthony asserted that the cedi appreciation should benefit all—consumers, businesses, and the broader economy. However, this benefit is eroded by rigid pricing, policy skepticism, and profit-driven exploitation. Until stakeholders across the value chain act in good faith, Ghanaians cannot benefit from the cedi appreciation. “The Government must be firm, sellers must be fair, and consumers must be protected”, he advised.
The strength of the cedi will be of no relevance or mean little if it does not translate into relief in the market stall. This is the right moment to bridge the gap between macroeconomic triumphs and real improvement in everyday life.
