Accra, Ghana – A welcome trend is emerging for Ghanaian shoppers: the strengthening of the Cedi is beginning to translate into lower prices at major supermarkets and retail outlets. After a challenging period of currency depreciation, the recent appreciation of the Ghanaian Cedi against the US dollar is offering consumers some much-needed relief at the checkout counter. This blog post examines how this currency shift is affecting the cost of goods, highlighting specific retailers that are passing on savings, and analyzing the broader economic implications for Ghana.

The crucial question is: how is the renewed strength of the Ghanaian Cedi impacting your wallet? The good news is that several major retailers have already begun to reduce prices, reflecting the improved exchange rate. Let’s delve into specific examples to illustrate this positive shift.

Orca Deco Ghana, a prominent home goods and furniture retailer, announced on May 12, 2025, that it had reduced prices by 15% on select items. The company stated its commitment to further price adjustments should the Cedi continue its strong performance against the dollar, signaling a proactive approach to passing on savings to consumers. My Home Furniture and Decor has also made significant price cuts, with one furniture set dropping from GH₵45,000 to GH₵29,000. This substantial reduction is directly attributed to the Cedi’s strengthening against the dollar. Alaha, another retailer, announced a 10% reduction on household items and furniture, further indicating a widespread trend of price adjustments linked to the currency’s performance.

The impact of the appreciating Ghanaian Cedi extends beyond individual retailers. Samuel Aggrey, the General Secretary of the Food and Beverage Association, confirmed that some of its members have already reduced prices by 7%. He indicated that further price reductions are contingent on the Cedi’s sustained performance, reflecting a cautious optimism within the industry. The association’s outlook is positive, with the potential for more widespread price decreases if the Cedi maintains its current strength.

However, the situation is not without its complexities. The Association of Ghana Industries (AGI) and the Ghana Union of Traders Association (GUTA) recently held an emergency meeting with the Minister of Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, to discuss the implications of the Cedi’s appreciation. The AGI emphasized the need for more time to recoup capital, citing that many businesses acquired goods at higher exchange rates when the Cedi was weaker. This means manufacturers need time to adjust prices, given their existing inventory purchased at less favorable exchange rates.

GUTA also voiced concerns about the challenges traders face in immediately lowering prices, adding another layer to the discussion. These concerns highlight the need for a nuanced approach, acknowledging that immediate and uniform price reductions across all sectors may not be feasible due to existing financial commitments.

Recent data underscores the Ghanaian Cedi’s positive trajectory. The Ghana Cedi gained 6.25% week-on-week against the dollar in the retail market. Year-to-date gains have reached 16.29% against the US dollar, a significant improvement compared to previous months. In the retail market, the Cedi is trading at a mid-rate of GH¢13.60 to one dollar, while in the interbank market, it stands at GH¢12.89 to one dollar. Furthermore, the Cedi has also gained against other major currencies, including the pound (7.61%) and the euro (5.81%). Market liquidity remains healthy, with an aggregate market supply of US$378.6 million.

The Cedi’s improved performance has also received international recognition. S&P Global Ratings recently upgraded Ghana’s long- and short-term foreign currency sovereign credit ratings to ‘CCC+/C’ and affirmed debt at “CCC+” with a stable outlook. This upgrade reflects Ghana’s economic growth, fiscal reforms, and improved external position, according to the S&P report. Analysts anticipate that this upgrade will further support the Cedi’s stability in the near term, boosting confidence in the Ghanaian economy.

The appreciation of the Ghanaian Cedi is providing a potential boost to consumers, with major retailers such as Orca Deco Ghana and My Home Furniture and Decor already passing on savings. While industry groups like AGI and GUTA are approaching the situation with caution, the trend suggests that broader price reductions may be on the horizon if the Cedi maintains its strength. The strengthening Ghanaian Cedi is a welcome sign, offering a potential pathway to lower prices at major supermarkets and improved economic conditions for consumers across Ghana.