The government of Ghana
has been advised to consider shutting all Forex Bureaux in the country as a
mitigating measure to the continuous depreciation of the Ghana Cedi against
major trading currencies.
This, the Central regional chairman of the Liberal Party of Ghana
(LPG) and 2020 Parliamentary Candidate for Agona East constituency, Samuel
Aryeequaye believes will help resuscitate the Cedi which has recently been
tagged as the worst-performing currency in the world after Sri Lanka’s Rupees.
According to the United Nation’s Best Diplomat’s Representative in Ghana, this
bold decision will help save the rapidly depreciating currency.
The globally known business and financial data medium, Bloomberg reported that
Ghana’s currency is the second-worst performing after Sri Lanka’s Rupee, as it
has lost 35 percent of its value since the beginning of the year.
In a media engagement, the young businessman cum politician said the influx of
Forex Bureaux in the country is one of major reasons why the country is
experiencing a ‘galloping’ inflation rate.
According to him, the Forex Bureaux operators are intentionally hoarding these
foreign currencies to sell them later when the rates go higher which he thinks
is affecting businesses in the country.
“In Ghana especially, the big cities where most of the major business
transactions mostly take place, at almost every corner there is such companies
and individuals engaging these activities”
He emphasized that this activity — currency exchange should be solely done by
state financial institutions so that the government can be in absolute control
because in other countries, these activities are done only at the bank and even
with that they go through a very thorough process and checks.
Speaking from a businessman’s perspective, Samuel Aryeequaye said the
continuous depreciation of the Cedi is gradually making business unattractive
in the country and that it is gradually leading to the collapse of businesses.
The central bank has sounded a strong warning to forex bureaus operating in the
country, that any breach of the regulations under which they work will result
in their closure or severe sanctions against them but according to Samuel
Aryeequaye, these companies must be closed down instead of always sounding
warnings.
Source: 3news.com