“Inflation Is Coming Down”: Importers And Exporters Association Demands BoG Action On Policy Rate

• The Executive Secretary for the Importers and Exporters Association of Ghana is calling for a better policy rate
• The Executive Secretary for the association, Sampson Asaki Awingobit, said easing the rate would help businesses
• Ghana's central bank has held the interest rate at 29 percent even though inflation has reduced to 25 percent

The Executive Secretary for the Importers and Exporters Association of Ghana, Sampson Asaki Awingobit, has called on the Bank of Ghana to work towards reducing the monetary policy rate.

He told YEN.com.gh this would help cushion businesses as they struggle with the depreciating cedi.

Traders are concerned that the depreciation of the cedi is affecting their businesses negatively.

The increased policy rate is also negatively affecting banks' ability to lend money to businesses.

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“If the Bog lends to the commercial banks at such a high rate, then of course interest rates is going to be high and that is worrisome to the business community.”

Ghana's central bank held the interest rate at 29 percent even though inflation has reduced to 25 percent.

Awingobit believes the Bank of Ghana should also reduce the policy rate in line with reduced inflation.

“Inflation is coming down and you still want to maintain your prime rate and once the prime rate is high, lending rate is also high.”

Awingobit further criticised the Bank of Ghana and the government for allowing a situation that has seen business leave Ghana for countries like Cote d’Ivoire, which have had significant conflicts in the last two decades.

“We who sit year without any conflict are having challenges with our currency, having challenges with our inflation, having challenges with our commercial lending rate and the Bank of Ghana is still mute.”

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Call to dollarise Ghana's economy

YEN.com.gh reported that the Institute of Economic Affairs (IEA) recently proposed that Ghana adopt the dollar to stabilise the economy.

According to Dr John Kwabena Kwakye, the director of research at IEA, this should temporarily stabilise the economy.

Adopting the dollar means Ghana would have to either abandon the use of the cedi entirely for the dollar or use the dollar and the cedi interchangeably.

Kwakye said this should be a stopgap to fix the destabilised economy until it rebounds.

Source: YEN.com.gh