Even though the Ghanaian cedi recently appreciated against the US dollar, several spare parts vendors in Abossey Okai are refusing to lower their rates.
Because their current stock was bought at a period when the exchange rate was much higher, the dealers contend that it is not economically feasible to lower prices at this time.
The Abossey Okai Spare Parts Dealers Association has called on its members to modify their rates in accordance with the cedi’s recovery, which is in opposition to this position.
In an interview with Citi Business News, a number of dealers clarified that price cuts would only be feasible if they were able to replenish at the more favorable exchange rates present.
“For now maybe it can’t be possible because we ordered the goods at a certain rate which is higher than what we are seeing now. With that price we have to sell and when the goods finish and you are ordering another one with a reduced [exchange] rate, then definitely the prices will come down,” said Francis Appiagyei, a spare parts dealer at Abossey Okai.
Another vendor, Yaw Ansong, mirrored the same. “Unless I sell the one which I already ordered and finish before I can reduce the [price] of the goods. I haven’t ordered new one so I can’t reduce the price. If I reduce the price I am going to lose my job,” he said.
Price cuts might be forthcoming for others, but only if the cedi’s performance holds steady over time.
“We have come to understand that the dollar is down and the cedi is also going up so we are going to do what they say but not now. We will go down on prices when we see the dollar is still stable at where it is,” Eric Osei Danso explained.
Source: newsthemegh.com