COPEC Reports Black Market Arrests Cause Rate Volatility

The recent crackdown on black market currency dealers is inadvertently fueling instability in the foreign exchange market and impacting fuel prices, according to Duncan Amoah, Executive Secretary of the Chamber of Petroleum Consumers (COPEC).

Mr. Amoah stated that the cedi is experiencing significant fluctuations within short periods, and the arrests are making it increasingly difficult for businesses to access much-needed dollars.

Speaking on Joy News’ PM Express Business Edition on Thursday, December 11, he raised concerns about the competitive dynamics in the fuel market. “As we speak, it’s competition that has kept fuel prices where they are. My finding right now is to the extent that, of course, the cedi has been on and off,” he explained.

He described a volatile situation where the cedi briefly stabilizes, then rapidly gains or loses value. “For today – Thursday, December 11 – I can put on record that whilst at the office with a few people, we kept trying to source dollars from the open market, and you will be surprised by the rates that kept coming within one hour,” Mr. Amoah revealed.

COPEC believes the security operation targeting illegal forex dealers is counterproductive. “I think that whatever the task force did yesterday by arresting black market dealers is also having a negative impact,” he said.

Mr. Amoah urged the authorities to reconsider their approach, suggesting a more collaborative strategy. He stated, “They must review that carefully whether to go indeed swooping in on these guys that provide the market with the forex or there should be a more, you know, friendly way of approaching them.”

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