An Associate Professor at the Department of Finance at the University of Ghana Business School, Prof. Lord Mensah, says all the measures outlined by the Minister of Finance to stabilize the cedi are temporary, urging the Bank of Ghana to work with banks to provide, financing to boost local businesses.
He was speaking on the back of the government’s intention to recapitalize the National Investment Bank, NIB, with 2.3 billion cedis.
This move, he said, will allow the NIB to meet the Bank of Ghana’s capital requirement of 400 million cedis.
He said, ” NIB is a local bank, and also a bank that has employed several people for so many years, and it is struggling in terms of financing obviously the bigger shareholder must come to a rescue.
So, from where I sit, the economic impact is huge looking at the insurance aspect as well. The minimum capital requirement for a bank is about Four Hundred Million in Ghana.”
” These are measures that are not permanent, and we need to appreciate that, if you are holding up your cedi you expect your cedi to be stable as a result of inflows from the IMF.
I was expecting that the work that the Finance Ministry is going to do with the Bank of Ghana will be a type of work that will increase production at least.”
