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Despite the recent strengthening of the Ghanaian cedi against the U.S. dollar, some spare parts dealers at Abossey Okai are holding off on reducing prices, citing the high cost of existing inventory.
The decision by these dealers contrasts with a directive from the Abossey Okai Spare Parts Dealers Association, which has encouraged members to align their prices with the improved exchange rate. However, many traders argue that such a move is not feasible at the moment, as their current stock was purchased when the dollar was stronger.
In an interview with Citi Business News, several dealers made it clear that price adjustments can only happen once they begin restocking at the more favourable exchange rates.
“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 dealer at Abossey Okai.
Another trader, Yaw Ansong, shared a similar view. “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.
Some dealers are open to lowering prices—but only if the cedi maintains its strength in the coming weeks.
“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,” explained Eric Osei Danso.
For now, it appears that any significant reduction in spare parts prices at Abossey Okai will depend largely on future exchange rate trends and how quickly dealers can replenish their stock at lower costs.
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