By: Roselyn Gayaglo
An Economist and Professor of Finance, Professor Godfred Bokpin has advised the Bank of Ghana to consider alternative strategies to strengthen the economy, rather than relying on measures like the mopping up of excess liquidity, which incurs additional costs for banks.
In an interview with Business News he explained that fluctuations in currency values often lead banks to pass these costs onto customers.
Prof. Bokpin’s remarks come in the wake of reports that some commercial banks have resumed charging fees on foreign exchange accounts. Several banks have already notified their clients via text messages and emails that the charges are now in effect with some as high as 20 dollars.
Professor Bokpin emphasized that administrative reforms and regulations by themselves are insufficient to resolve the core imbalances between demand and supply. He called on the Central Bank to adopt more sustainable measures to avoid unintended consequences.
Professor Bokpin warned that if the current economic approach remains unchanged, it could strengthen the underground economy.
He explained that the additional costs imposed by banks might drive customers to withdraw their funds, potentially pushing them towards black market transactions.
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