Kofi Kapito, the executive secretary of the Consumer Protection Agency (CPA), has been harshly critical of members of the Ghana Union of Traders Association (GUTA) for refusing to lower commodity prices in spite of the government’s efforts to stimulate the economy.

His remarks follow government initiatives to reduce the price of petroleum and the Cedi’s weakening against the US dollar.

Due to the combined effects of the devaluation of the Cedi and the rise in the price of crude oil internationally, business owners increased the pricing of goods and services.

The scenario had a detrimental effect on people’s livelihoods and increased the cost of living in the nation.

The Cedi, however, has seen significant advances against the major foreign exchanges.

This is as a result of government’s effort to aid the growth of local businesses and sustain livelihoods.

Nevertheless, this has not reflected on prices of goods and services in the market.

Kofi Kapito, who was addressing the media on Tuesday, December 20, described the attitude of the traders as unfair, shady and unhealthy for Ghana’s economy.

He has demanded transport unions and GUTA members to use the same speed and alacrity to increase prices to reverse prices of commodities downwards.

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“We are operating in a free market so the CPA understands and appreciates the importers, retailers and transport unions but that doesn’t give them the advantage to not adhere to the same principles when it favours them and when it favours the consumer there shouldn’t be a challenge.

“I urge businesses to consider this to encourage free flow of commerce in the country because the worst situation is for consumers to either reduce their consumption or stop patronizing their businesses,” he reiterated.

He has maintained that it is only fair that the government’s effort in mitigating the cost of fuel and stabilizing the cedi would reflect in the prices of goods and commodities.

He affirmed that the CPA will continue to engage the traders to reduce the prices of goods significantly to cushion consumers.

After the government stopped making debt payments, the global ratings agency S&P lowered Ghana’s credit ratings to default. This complicates the planned debt restructure intended to enable an IMF bailout.

Due to the ban on debt payments, Ghana, which has $13 billion in foreign debts, was downgraded from CC to selected default, according to a statement released by the credit evaluator on Tuesday. According to economists Frank Gill and Ravi Bhatia, Ghana is experiencing “extremely low net reserves, a volatile currency rate, rising inflation, and a weaker economy” at the time of the default.

The sovereign’s ability to refinance its maturing debt has been hampered by all of these concerns, according to the S&P analysts. “Following the presentation of restructurings and their acceptance, we might improve the long-term ratings.”

Ghana caught investors by surprise earlier this week by announcing it would cease payments on its foreign bonds, commercial loans and most bilateral obligations pending an agreement with creditors. While plans for a broad restructuring of foreign and local debt had already been signaled, some expected the government to keep making payments in the interim.

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S&P is the first major rating company to declare Ghana’s foreign debt in default. Fitch Ratings and Moody’s Investors Service assign it the second-lowest rating. The Trade Association for the Emerging Markets said Monday the notes should trade flat.

A group of Ghana’s foreign bondholders — including Abrdn, Amundi, BlackRock and Greylock — have already organized to form a creditor committee ahead of debt restructuring negotiations.

Ghana’s bonds due in 2032 extended declines Tuesday, falling half a cent to 32 cents on the dollar, the lowest since late November.

The country’s local-currency debt score was slashed to default by S&P earlier this month after the government announced a voluntary domestic debt-exchange program that involved interest losses for holders.

According to Steve Hanke, a professor at Johns Hopkins, the Ghanaian Cedi has lost 31.17% of its value against the US dollar since January 2022.

In order to reflect this, he ranked the local money at number 14 on this week’s “Hanke’s Currency Watchlist.”

He tweeted on Tuesday night, “Thanks to Pres. Akufo-Addo, Ghana is in an economic death spiral.

He previously placed Cedi 15th among a list of nineteen performing currencies.

“By my calculations, the Ghanaian Cedi has depreciated 34.17% against the USD since Jan. 2020, which is why Ghana is in 15th place in this week’s Hanke’s #Currency Watchlist,” one of his earlier tweets said.

“To save the cedi,” he said, “Ghana must mothball its central bank and install a #CurrencyBoard.”

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The Cedi has over the past few days, especially since the start of December 2022, been gaining strength against the major trading currencies particularly, the Dollar.

Per the Bank of Ghana (BoG) rate, the Cedi, as of Monday December 19, was buying at GHS7.9970 to a Dollar and and selling at GHS8.0050 to a Dollar.

President Nana Addo Dankwa Akufo-Addo indicated that the Cedi’s appreciation against the US Dollar is as a result of the measures taken by his government in partnership with the central bank, the Bank of Ghana (BoG).

Mr Akufo-Addo said the appreciation did not happen by chance.

Speaking at the centenary celebration of the Ga presbytery of the Presbyterian Church of Ghana in Accra on Sunday December 18, he said “At the height of our challenges there were some who doubted the capabilities of my government and I to return our nation back onto the path of progress and and prosperity and lift us out of our current problems. In those dark moments, my fellow Ghanaians and and congregation, I could only recount the words of the St Matthew chapter 19 vrs 26 which states ‘But Jesus looked at them and said to them, with men this is impossible but with God all things are possible.”

He added “With the appropriate policy, determination and hard work on our part things are beginning to turn around. What seemed impossible yesterday is now becoming possible. We are definitely not yet out of the woods. However, today, the Cedi is rapidly appreciating against the US Dollar and all major currencies, making up for its losses and the prices of petroleum products are reducing at the pump.

“The strengthening of the Cedi has not happened by chance but through the implementation of deliberate policies by government in collaboration with the Bank of Ghana. These include Cedi liquidity tightening measures resulting in the offloading of forex as stalled value by speculators, the improvement of forex inflows from remittances and the mining sector and the reaching of the staff level agreement with the IMF for a 3 billion US Dollar package. All these have combined to bring the Cedi to this position and I can assure you that government will continue to work hard to maintain and sustain the gains made.

“Indeed, in the weeks ahead, the BoG will continue with the purchases of forex from the mining and oil sectors to enhance liquidity supply to the markets, continue with single unified forex forward auction and some modest targeted bilateral support  to critical import.”