The weakening of the cedi has prompted the Abossey Okai Spare Parts Dealers Association to threaten price increases beginning next week.
Expect to pay more for their services if you are a replacement parts customer.
Businesses are extremely concerned about this because of the ongoing volatility of the local currency.
Some importers of replacement parts who talked with Citi Business News off the record claimed that in order to import the same amount of goods, they would have to spend more money.
They continued by saying that they must increase the prices due to this situation.
The Association’s Head of Communications, Takyi Addo, highlighted that there will probably be a spike in spare part prices in the upcoming week.
Undoubtedly, price increases are in store for us because Ghana doesn’t export. We import things. Therefore, whenever the dollar-cedi exchange rate fluctuates and impacts the local currency, prices will undoubtedly increase. From now till next week, pricing will change.
He continued by saying 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 believe that by year’s end, the Ghana cedi’s problems may not be finished, as it may be worth between 15 and 16 Ghana cedis to the US dollar.
The esteemed financial and media organisation Bloomberg has forecast that the Ghana cedi will weaken even more by year’s end.
According to Bloomberg’s estimate, the cedi is expected to appreciate to GHc 15.98 in relation to the dollar, which is consistent with the prognosis.
The dollar is trading between ¥14.90 and ¢15.00 on the forex market, according to a visit to a few currency bureaus on Wednesday, May 15.