The Abossey Okai Spare Parts Dealers Association has announced a potential price increase starting next week due to the depreciation of the cedi.
Customers should prepare for higher costs for spare parts and related services.
This price hike comes amidst ongoing volatility of the local currency, raising significant concerns among businesses.
Some importers of spare parts, speaking anonymously to Citi Business News, mentioned that they now need to pay more cash to import the same quantity of goods.
This situation forces them to increase prices.
Takyi Addo, the Head of Communications for the Association, said the prices of spare parts are expected to rise in the coming week.
“Definitely we are going to experience a price increase because for Ghana we don’t do exports. We do imports. So the moment there is a dollar-cedi-differential, whenever it affects the local currency, definitely the prices will go up… We will see different prices from now to next week”.
He added that, despite the looming surge in prices, the Association does not have the authority to determine the prices of spare parts, but rather, it lies within the purview of the dealers.
The woes of the Ghana cedi may be far from over, as market watchers predict it could reach between 15 and 16 Ghana cedi to the dollar by the end of the year.
Bloomberg, a renowned financial and media company, has predicted that the value of the Ghana cedi will depreciate further by the end of the year.
The prediction falls in line with Bloomberg’s forecast that the cedi is anticipated to reach a value of GH¢15.98 against the dollar.
A visit to some forex bureaus on Wednesday, May 15, shows that the dollar is trading between ¢14.90 and ¢15.00 on the forex market.
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