While Ghanaians seek greater reductions in commodity prices, the Ghana Union of Traders’ Association (GUTA) has stated that a main impediment to compliance is the high cost of foreign exchange obtained through the black market.
The central issue, according to GUTA President Mr. Joseph Obeng, is the lack of readily available forex in formal banking institutions, forcing traders to rely on informal vendors, known as “abokyis.”
This dependency on the black market means traders acquire foreign currency at a higher cost, a critical factor that directly influences the final prices of imported goods.
“We buy over 70% of our forex from the ‘abokyis’ because banks don’t have it readily available,” Mr. Obeng explained in an interview on Frontline on Rainbow Radio 87.5FM.
“The forex we buy from them is expensive, so what justification do Ghanaians have for demanding further reductions in the prices of goods? Have interest rates, VAT, and other costs of trading reduced? We can adjust prices further if all of these things reduce.”
Mr. Obeng stressed that while the exchange rate is a major factor, it is not the only one, citing a host of other costs—including duty, bank interest rates, and VAT—that also play a significant role.
Speaking in an interview on Frontline on Rainbow Radio 87.5FM, he acknowledged a significant reduction in the forex rate, stating that it is now around Ghc12 to a dollar on the forex market.
He indicated that the prices of goods have responded positively to this reduction and Ghanaians must appreciate that instead of demanding more.
“We have seen a significant reduction in the forex, and due to that, we have also seen that prices of goods have responded positively,” he stated.
“The price reduction we have seen is the best we can do, and so Ghanaians should appreciate it.”
By: Rainbowradioonline.com/Ghana
