COPEC Boss Warns Crackdown on Black-Market Forex Is Fueling Cedi Volatility

Executive Secretary of the Chamber of Petroleum Consumers (COPEC), Duncan Amoah, is cautioning government to reconsider its aggressive clampdown on black-market forex dealers, warning that the move is already creating distortions in the cedi’s value and threatening fuel price stability.

Speaking on PM Express Business Edition on Thursday, Mr Amoah said the sudden swoops by security agencies have triggered unexpected shocks within the forex market, compounding the difficulties of import-dependent sectors such as petroleum.

According to him, the cedi has been experiencing inconsistent behaviour in recent weeks, oscillating between brief periods of stability and sudden depreciation. He explained that the irregular movements of the currency remain one of the strongest determinants of fuel price adjustments.

“You would find a certain window where, for two weeks, the cedi is relatively stable,” he said. “Then, at another time, the currency gains. The next moment, you hear that the cedi has suddenly lost value.”

Mr Amoah revealed that COPEC witnessed the volatility firsthand on Thursday, December 11, while attempting to source dollars from the open market. Within a single hour, he said, the quoted rates changed sharply several times — a development he described as alarming.

He linked part of the instability to the recent swoops on street forex dealers.

“Whatever the task force did yesterday by arresting black-market dealers is also having a negative impact,” he said, noting that the crackdown has disrupted informal trading channels that ordinarily supplement the formal banking sector’s limited supply.

Mr Amoah urged authorities to reassess their strategy, emphasising that heavy-handed enforcement could worsen liquidity challenges rather than resolve them.

“The government should review that carefully — whether to keep swooping in on these guys who provide the market with the forex, or find a more friendly and structured way of engaging them,” he advised.

He stressed that any attempt to stabilise fuel prices must begin with ensuring a predictable and functional forex market, as petroleum pricing models remain highly sensitive to cedi–dollar fluctuations.