Ghanaian Economist Dr. Theo Richardson says Ghana’s economy will crash by June this year if the Bank of Ghana continues with its kneejerk measures to rescue the cedi.
“The government is facing liquidity problems and if we don’t get the appropriate remedies to address the issues at hand the situation may worsen and by June the economy may crash,” Dr. Richardson said.
He stressed: “I said if they don’t address the fundamental problems facing the economy, by June the country’s economy will crash because the government has not even paid University Lecturers since last year among other pressing issues which needs to be address.”
Dr. Richardson was speaking on Adom News about recent measures announced by the central bank save the cedi from falling further, after an all time 7.2% depreciation against foreign currencies.
As part of the measures, the BOG ordered all commercial banks not to issues cheques and cheque books in foreign currency again, not to give loans in foreign currency again, and to allow business people travelling to cash on only US$10,000.
But Dr. Richardson said the BOG should have given about three months notice to the dollar account holders, particularly importers and exportes, so they could get enough dollars for transactions, instead of stopping dollar transactions with immediate effect.
He described the BOG’s directive as “very harsh” for businesses, adding that it has a potential of crashing the economy by June if they are not reversed quickly.
Dr. Richardson explained that the BoG’s new policies would force investors and business men and women to take drastic steps that could make things worse for the economy.
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