Cedi Free Fall: Close down all Forex Bureaux in the country – Gov’t advised

The government of Ghana has been advised to consider shutting all Forex Bureaux in the country as a mitigating measure to the continuous depreciation of the Ghana Cedi against major trading currencies. 

This, the Central regional chairman of the Liberal Party of Ghana (LPG) and 2020 Parliamentary Candidate for Agona East constituency, Samuel Aryeequaye believes will help resuscitate the Cedi which has recently been tagged as the worst-performing currency in the world after Sri Lanka’s Rupees.

According to the United Nation’s Best Diplomat’s Representative in Ghana, this bold decision will help save the rapidly depreciating currency.

The globally known business and financial data medium, Bloomberg reported that Ghana’s currency is the second-worst performing after Sri Lanka’s Rupee, as it has lost 35 percent of its value since the beginning of the year.

In a media engagement, the young businessman cum politician said the influx of Forex Bureaux in the country is one of major reasons why the country is experiencing a ‘galloping’ inflation rate.

According to him, the Forex Bureaux operators are intentionally hoarding these foreign currencies to sell them later when the rates go higher which he thinks is affecting businesses in the country.

“In Ghana especially, the big cities where most of the major business transactions mostly take place, at almost every corner there is such companies and individuals engaging these activities”

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He emphasized that this activity — currency exchange should be solely done by state financial institutions so that the government can be in absolute control because in other countries, these activities are done only at the bank and even with that they go through a very thorough process and checks.

Speaking from a businessman’s perspective, Samuel Aryeequaye said the continuous depreciation of the Cedi is gradually making business unattractive in the country and that it is gradually leading to the collapse of businesses.

The central bank has sounded a strong warning to forex bureaus operating in the country, that any breach of the regulations under which they work will result in their closure or severe sanctions against them but according to Samuel Aryeequaye, these companies must be closed down instead of always sounding warnings.

By 3news.com|Ghana