Business News of 2014-05-24

Gov’t cautioned against moves to review all BoG measures

Managing partner at accounting firm, Price Waterhouse Coopers is kicking against any attempts to review all the recent foreign exchange measures by the Bank of Ghana (BoG).

There have been calls for the Central Bank to scrape all the recent directives as the regulator meets to review the measures.

Opponents of the policies say it has done little to halt the cedi's depreciation. But Mr. Addo says this would not be prudent.

“The banking sector or the financial services is a unique industry. It operates on confidence, credibility and good faith,” he said.

“If tomorrow the Bank of Ghana is to scrap the current directives average person who is rational will go to the bank to collect and clean out all his foreign currency whatever is left because he is not sure what will happen next.”

He further explained: “If you open the bank vault and tell the average person to go collect all the dollars, he will go and collect everything.”

The Bank of Ghana on February 6 introduced a set of measures to help stabilize the Ghana cedis, however, after the policies were introduced, the local currency has gone down by almost 15 percent according to the Bank of Ghana's own assessment.

Source: citifmonline.com
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