Professor William Baah Boateng of the University of Ghana is calling on Ghanaian importers and traders to reflect the recent appreciation of the cedi in their pricing strategies, warning that failing to do so exposes a clear inconsistency.

Speaking on PM Express Business Edition on Joy News, the economics lecturer questioned why traders are quick to increase prices when the cedi falls but hesitate to reduce them when it gains value.

“I will be very happy if he says when it goes down, then he will also reduce his prices to reflect the same level,” Prof. Baah Boateng said, reacting to comments made by a member of the Ghana Union of Traders Association (GUTA), who expressed optimism about the cedi's performance.

He stressed that the pace of the cedi’s appreciation must be matched by equivalent reductions in prices on the market. “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 cautioned.

The economist explained that traders often increase prices based on expectations of a declining cedi and should do the opposite when the currency is strengthening. “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.”

He criticised the double standard where prices rise during economic downturns but do not come down when conditions improve. “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.”

Prof. Baah Boateng also praised the Bank of Ghana for its cautious handling of the situation. “What I see the central bank doing is watching and not just doing anything,” he observed. “They’re seeing how things unfold, and that’s wise.”

Turning to government performance, he pointed out that although the overall structure of Ghana’s economy remains largely the same, efforts have been made to manage public spending more effectively. “When you look at the structure of the economy, we still have the same structure as it used to be last year,” he noted. “Government has tried as much as possible to manage expenditure.”

He clarified that the goal isn’t to slash spending, but to ensure that it supports real economic activity. “This is not cutting expenditure, but making sure the spending is tied to economic activity.”

He added that such fiscal discipline allows the Bank of Ghana to concentrate on monetary and exchange rate policy without having to address fiscal shortfalls. “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.”

Prof. Baah Boateng’s message was clear: the benefits of a stronger cedi should not be kept in boardrooms — they should be felt by consumers through fairer pricing.