The strengthening cedi on my own can not convey costs down, President of the Association of Ghana Industries (AGI), Dr Kofi Nsiah-Poku, has mentioned.

He insists that companies are nonetheless grappling with previous losses, prime application prices and fragile financial self belief.

Speaking on Joy News’ PM Express Business Edition on Thursday, Dr Nsiah-Poku defined that producers who suffered when the greenback surged are actually looking to stabilise their books.

“At the time that the dollar was very high, I was making losses. Now that the dollar price is low, I have to recover the loss,” he mentioned.

He famous that many patrons be expecting fast value discounts for the reason that alternate charge has progressed, however the truth for profit is extra complicated.

“Some of the reasons why prices are not dropping as expected, even though the dollar has become very steep, is one of the reasons, but not the only reason,” he mentioned.

Beyond alternate charge tendencies, he pointed to issues about sustainability. According to him, profit avid gamers don’t seem to be absolutely satisfied that the present financial beneficial properties are sturdy.

“Industry still does not think that the economy is so robust. And this is a credit economy,” he mentioned.

Dr Nsiah-Poku defined that producers ceaselessly provide items on credit score and would possibly not obtain cost for months. That lengthen creates uncertainty.

“If I manufacture and give it to my customers on credit, and they pay me in two, three months, four months, and by that time, if the gain has reversed, what do I do?” he requested.

That possibility, he mentioned, forces companies to behave cautiously when adjusting costs.

“So we are very careful in trying to reduce the prices,” he added.

He additionally highlighted application prices as a significant component preserving costs increased. According to him, the price of energy and different products and services stays prime, offsetting the beneficial properties from a more potent cedi.

“And also the cost of utilities is even high, even when the dollar is going down,” he mentioned.

Dr Nsiah-Poku argued that if the alternate charge improves, application prices will have to replicate that shift.

“If the dollar is going down, we expect that utility cost should also be down, because we now have a higher cost, which is balancing the gain in the exchange rate,” he defined.

His feedback come at a time when many patrons are not easy value aid following the hot appreciation of the cedi.

But for profit, the equation isn’t easy. Past alternate charge losses, uncertainty concerning the sturdiness of monetary beneficial properties, and constantly prime application expenses are combining to sluggish the tempo of value discounts.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by means of Readers and Contributors in this platform don’t essentially constitute the perspectives or coverage of Multimedia Group Limited.