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Deputy Finance Minister Dr Stephen Amoah has criticised some members of the Ghana Union of Traders Associations (GUTA), accusing them of exacerbating the instability of the cedi against the US dollar by utilizing black market currency exchange services.
In an interview with host of Yen Nsempa, Nana Yaa Brefo, Dr Amoah highlighted the detrimental impact of black-market activities on the national economy.
He emphasized that such practices place undue demand and value on the dollar, complicating the country’s efforts to stabilize its currency.
“A member of GUTA might need $200,000 and instead of going to the bank, they go to the black markets,” Amoah stated.
“This creates a higher demand for the dollar, making it difficult for the country to win the currency war against the dollar,” he said.
Dr Amoah further explained the mechanics of how black-market transactions disrupt the formal economy.
He said “when traders bypass official banking channels in favor of unregulated exchanges, it puts additional pressure on the cedi, leading to its depreciation.”
This practice not only undermines government efforts to stabilize the economy but also perpetuates a cycle of dependency on foreign currency.
Drawing comparisons with other countries, Dr Amoah suggested that Ghana should take inspiration from South Africa where there is minimal demand for the dollar.
He recounted his own experience in South Africa to illustrate his point.
“After waiting in line to change my Ghana cedis to the South African currency, it took me more than 37 minutes, and they had to search me even though I was carrying a diplomatic passport,” Amoah recounted.
“I went to purchase something and tried gifting the person £5, but they rejected it. That is the right thing. Every correct country will reject foreign currency.”
This anecdote underscores the rigorous controls South Africa has in place to maintain the integrity of its currency, a practice Dr Amoah believes Ghana should emulate.
By creating a system where foreign currency is not easily accepted, he said countries can protect their own currencies from devaluation.
The Deputy Finance Minister did not mince words when addressing the challenges faced by the Bank of Ghana and the Ministry of Finance in curbing black market activities.
He expressed frustration over the attitudes of some Ghanaians towards financial regulations.
“The Bank of Ghana and Ministry of Finance are armed to the teeth to solve this, but Ghanaians want a cheap life, are selfish, and want a shortcut to things,” Dr Amoah asserted.
“If the government announces the shutdown of black markets today, Ghanaians, with their bad attitude, will skyrocket the prices so high that no one can buy the dollar,” he said.
Source: TV3News.com
