Renowned Economist, Kwame Pianim is certain the new and revised measures introduced by the Bank of Ghana recently to arrest the cedi from further fall as well as check dollarization will not yield any positive results.
“The bank of Ghana measures was a panic thing and it will not work. We have seen it before administrative controls regulations have never worked in Ghana and it will never work,” he said.
The rules which were introduced a few weeks ago have received mixed reaction from stakeholders.
Among the rules, cash withdrawals over the counter from foreign exchange accounts and foreign currency accounts will only be permitted for travel purposes outside Ghana and must not exceed US$10,000.00 or its equivalent in convertible foreign currency, per person, per travel.
While cheques or cheque books, issued on Foreign Exchange Accounts and Foreign Currency Accounts and transfers from one foreign currency denominated account to another will not be permitted.
Authorized dealers also per the new rules will not be allowed to sell foreign exchange for the credit of Foreign Exchange Accounts and Foreign Currency Accounts of their customers.
The cedi this year alone has depreciated by over eight percent against the U.S dollar
Some Forex analysts have asserted the new rules will only worsen the cedi’s plight.
Speaking at Citi FM’s round table on the search a for a new paradigm for the economy economist Kwame Pianim said the new rules will only scare away investors and lead to a black market boom.
According to him, “if something is not done about these measures we will go back to the black market for foreign exchange and investors will not come and exporters will keep their foreign exchange outside and all of us Ghanaians will keep our working balances in London or New York.”
“So you have dealt with the stock problem but the flow problem you have not dealt with the foreign exchange you are looking for will not come because of these measures,” he added.
By: Vivian Kai Mensah/citifmonline.com/Ghana