Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, says the state must rethink its sudden crackdown on black market forex dealers because the action is already distorting rates and hindering efforts to stabilise fuel prices.
He said the task force swoops are creating unintended shocks.
Speaking on PM Express Business Edition, he explained that the cedi’s unstable performance heavily influences fuel prices today.
He said his checks show that the currency has been “on and off.”
“You would find a certain window, two weeks that the cedi is relatively stable,” he told host George Wiafe on Thursday.
He added that at other times “the cedi gains.” Then suddenly, “the next time you hear the cedi has lost some value.”
He said the COPEC team experienced the volatility firsthand on Thursday, December 11.
“For today… 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.”
He said the sharp movements were alarming.
Mr Amoah linked part of the volatility to the security operations against street forex traders.
He said, “Whatever the task force did yesterday by arresting black market dealers is also having a negative impact.”
Mr Amoah advised authorities to reassess their approach.
The COPEC boss said government should “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 friendly way of approaching them.”
He warned that the current method may be worsening the rate rather than stabilising it.