Businesses Hint at Possible Price Reductions if Cedi Stability Continues

By Praisebell Rosemond Larbi

Some businesses say consumers may soon feel relief at the market if the cedi’s current stability is sustained through the rest of November. According to the Ghana National Chamber of Commerce and Industry, members are closely tracking the local currency’s performance and are ready to respond if the trend holds.

Chief Executive of the Chamber, Mark Badu Aboagye, says the business community is cautiously optimistic. Speaking to the media, he explained that many firms have been evaluating the cedi’s movements since October and will not hesitate to adjust prices downward if the appreciation continues.

“We are currently observing the cedi’s movement since October, and if the trend is sustained, we will not delay in responding to the development,” he said.

He praised the Bank of Ghana for policy measures that have helped the cedi appreciate significantly over the past months, but he stressed the need for consistency. According to him, the business community wants to be confident that the gains are not temporary before implementing price changes.

“We appreciate the steps taken by the Bank of Ghana to stabilize the currency, but we want to see whether this current trend will hold,” he added.

Aboagye also encouraged economic managers to remain focused on ongoing reforms, arguing that sustainable stability will depend on disciplined implementation of monetary and regulatory measures. He noted that pricing decisions are influenced by multiple factors, including supply chain costs, inflation expectations, and exchange rate movements.

Earlier in the year, some businesses announced the first round of price reductions following a sharp appreciation of the cedi. But many remained cautious, saying they needed to see sustained stability before cutting prices further. Some analysts felt that the earlier reductions did not fully reflect the strength of the cedi’s rally, especially among businesses heavily dependent on dollar-denominated inputs.

The cedi has posted an impressive performance this year, appreciating by 34.86 percent against the US dollar as of the end of October 2025. Within October alone, the currency advanced by nearly 14 percent, marking one of its strongest monthly performances in recent years.

Commercial banks say the currency’s strength stems from a combination of improved dollar supply and regulatory measures. A major factor has been the Bank of Ghana’s shift from weekly forex auctions to direct spot sales to banks, a system the Ghana Association of Banks says has improved efficiency and transparency in the market.

In October, the central bank injected about 1.1 billion dollars into the market under its revised intervention program. Analysts say this has been crucial in calming volatility, boosting liquidity, and restoring confidence.

The Bank of Ghana, through its Domestic Gold Purchase Program, has also introduced a new phase of forex intermediation, with plans to sell up to 1.15 billion dollars monthly on a spot basis through competitive auctions.

Governor Dr. Johnson Asiama explained that the new system ensures fair access and transparency for all licensed banks. He said there will be no special conditions or allocation restrictions, ensuring a level playing field. He added that monthly auction volumes may be adjusted depending on market conditions, but the central bank remains committed to deepening the interbank market and maintaining stability.

Businesses say if the cedi’s stability extends beyond November, consumers should expect gradual price adjustments, especially for goods whose pricing is directly linked to the exchange rate.

For now, all eyes remain on the currency’s performance over the coming weeks.