The Abossey Okai Spare Parts Dealers Association has promised to raise prices starting next week as a result of the cedi’s depreciation. Clients who purchase extra components will need to prepare for a higher cost for their services. This occurs in the middle of the local currency’s ongoing volatility, which is extremely concerning for enterprises. Some spare part importers claimed that in order to import the same amount of goods, they would have to spend more money, which would force them to raise the prices due to this progress. The Association’s Head of Communications, Takyi Addo, stressed that there will probably be a spike in spare part prices in the upcoming week.
“There would undoubtedly be a price hike because Ghana does not engage in exporting. We import goods. Therefore, anytime there is a dollar-cedi gap that impacts the local currency, prices will undoubtedly increase. Prices will change between now and next week. He went on to say that even with the impending price increase, the Association is not able to set spare part prices; instead, the dealers are in charge of doing so. Market observers estimate that by the end of the year, the Ghana cedi might be worth between 15 and 16 Ghana cedi to the US dollar, suggesting that its problems may not be finished.
The respected financial and media outlet Bloomberg has forecast that by year’s end, the Ghana cedi‘s value will have further declined. The estimate is consistent with Bloomberg’s prediction that the cedi will appreciate to GHc 15.98 in relation to the US dollar.
