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“The Bank of Ghana and Ministry of Finance are armed to the teeth to solve this, but Ghanaians want a cheap life, are selfish, and want a shortcut to things,” Dr. Stephen Amoah claimed.
Deputy Finance Minister Dr. Stephen Amoah popularly known as Sticka has chastised certain Ghana Union of Traders Associations (GUTA) members, alleging that they have used illicit currency exchange services to exacerbate the cedi’s volatility vis-à-vis the US dollar.
Dr. Amoah emphasized the negative effects of black market operations on the country’s economy during an interview with Nana Yaa Brefo, host of Yen Nsempa.
He stressed that such actions complicate the nation’s attempts to stabilize its currency by giving the dollar unwarranted demand and value.
“A member of GUTA might need $200,000 and instead of going to the bank, they go to the black markets,” Amoah stated.
“This creates a higher demand for the dollar, making it difficult for the country to win the currency war against the dollar,” he said.
“After waiting in line to change my Ghana cedis to the South African currency, it took me more than 37 minutes, and they had to search me even though I was carrying a diplomatic passport,” Amoah recounted.
“I went to purchase something and tried gifting the person £5, but they rejected it. That is the right thing. Every correct country will reject foreign currency.”
Dr. Amoah went on to detail the ways in which transactions on the black market subvert the legal economy.
“Trading on unregulated exchanges instead of official banking channels puts additional pressure on the cedi, leading to its depreciation,” he said.
This behavior feeds the cycle of foreign currency need while also undermining government efforts to stabilize the economy.
Dr. Amoah made comparisons to other nations and recommended that Ghana learn from South Africa, where there is little need for the dollar.
He used anecdotal evidence from his time in South Africa to make his point.
This tale highlights the stringent measures that South Africa has taken to preserve the value of its currency; Dr. Amoah feels that Ghana ought to follow suit.
According to him, nations may prevent the devaluation of their own currencies by establishing a system in which accepting foreign exchange is difficult.
When speaking about the difficulties the Ministry of Finance and the Bank of Ghana are facing in putting a stop to activity on the black market, the Deputy Finance Minister held no quarter.
He bemoaned the mindset of several Ghanaians toward financial rules.
Source: Ghanatodayonline.com
