Cedi depreciation: Customers to pay more for spare parts – Abossey Okai Spare Parts Dealers

  Wed, 22 May 2024
Business & Finance Cedi depreciation: Customers to pay more for spare parts – Abossey Okai Spare Parts Dealers

Abossey Okai Spare Parts Dealers Association has announced an increment in prices from next week due to the depreciation of the cedi.

Customers of spare parts will have to brace themselves to pay more for their services.

This comes amidst the persistent volatility of the local currency, causing grave concerns from businesses.

According to some importers of spare parts who spoke off record to Citi Business News, they would need to pay more cash to import the same quantity of items.

They added that this development compels them to raise the prices.

The Head of Communications for the Association, Takyi Addo, emphasized that the prices of spare parts are likely to surge 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 GHc 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.