Certain spare parts vendors in Abossey Okai are resisting pressure to lower prices, despite the recent strengthening of the Ghanaian cedi against the U.S. dollar.
The vendors contend that their existing inventory was acquired at a much higher exchange rate, rendering it financially impractical to decrease prices at this moment.
This position is at odds with the Abossey Okai Spare Parts Dealers Association’s directive, which has encouraged its members to adjust prices in accordance with the Cedi’s appreciation.
In an interview, several dealers articulated that price reductions would only be feasible once they are able to replenish their stock at the current, more favorable exchange rates.
Francis Appiagyei, a dealer in spare parts at Abossey Okai, remarked, ‘Currently, it is not feasible because we procured the goods at a rate that exceeds the current one. We must sell at that price, and only when we restock at a lower exchange rate will prices decrease.’
Yaw Ansong, another dealer, shared a similar view, stating, ‘I can only lower the price after selling my existing stock. I have not placed new orders, so I cannot reduce prices without risking my livelihood.’ For some, price reductions may be on the horizon, but only if the cedi maintains its upward trajectory.
Eric Osei Danso noted, ‘We recognize that the dollar has depreciated and the cedi has appreciated, so we intend to comply with the directive, but not immediately. We will lower prices when we observe that the dollar remains stable at its current level.’