Stability of the Cedi will stop dollarization – Dr. Wampah
Acting BoG governor, Dr. Wampah
The Acting Governor of the Bank of Ghana, Dr. Henry Kofi Wampah has expressed worry about the increased dollarization in the Ghanaian economy.
Recently, universal banks were chided for their role in encouraging the dollarization of the economy through the crediting of the foreign exchange accounts of customers with proceeds from private sector exports; whereas some banks also use them for investments and transactions abroad (externalization) without documentation of such proceeds.
Speaking at the 52nd MPC meeting, Dr. Wampah said: “This is a worry to most of us and what need to be addressed are really the fundamentals. Why do people price their goods and services in foreign currency? Why don’t they accept the cedi? And one of the reasons has been the instability which we have seen in the cedi over the past few months.”
According to him, efforts are in place to stabilize the local currency in a bid to prevent the pricing of goods and services in dollars saying, “concentration will be lost if we try to institute measures that only address the administrative part of it. The first issue is to bring back the stability in the cedi.”