Business News of 2014-02-21

BoG’s policy directives to ensure price stability

The quest of the Bank of Ghana (BoG) to salvage the free fall of the Cedi is not intended to stifle economic activities with its policy interventions.

The Head of Financial Stability Unit, Dr Benjamin Amoah, told players in the tourism industry at a stakeholders forum in Accra that the BoG sought to ensure price stability for an enabling environment towards economic growth.

The BoG, according to him, was mandated to ensure financial stability and deliver inflation target by the Foreign Exchange Act.

“And, therefore, the BoG had to initiate policies and directives such as these to operationalise the act,” he said.

The directive, he said, was an attempt to end the dollarisation of the Ghanaian economy and ultimately, restore the stability of the cedi.

According to him, the BoG had addressed most ambiguities in its directives raised by stakeholders.

Dr Amoah encouraged them to not hesitate to approach the BoG for more clarifications.

He said the cedi could only become stronger through the collaborative efforts of all stakeholders, and therefore, called on players, both nationals and foreigners, to abide by the directives.

According to him, there would be no exemptions to this rule as demanded by some stakeholders in the tourism industry.

He explained that making exemptions would cause the directive and its intended achievements to flop.

Dr Amoah said the fall of the cedi would translate into prices of goods and services because we import a lot and, therefore, something had to be done to save the economy.

Stakeholder’s platform

The Minister of Tourism, Culture and Creative Arts, Mrs Elizabeth Ofosu- Adjare, said the forum was to create a platform for stakeholders in the tourism industry to seek clarification of sensitive issues resulting from the BoG’s directive which had direct impact on their businesses.

According to her, since the announcement of the policy intervention, tourism operators had inundated the ministry with calls on how the implementation of the BoG’s directive would impact on the tourism industry.

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