Economist and Finance Professor Godfred Bokpin has urged the Bank of Ghana to explore alternative strategies for economic stabilization rather than relying on costly measures like mopping up excess liquidity.
In an interview with the media, Professor Bokpin highlighted that such measures often lead to banks passing on these additional costs to customers through higher fees, particularly impacting those with foreign exchange accounts.
His comments follow reports that several commercial banks have reintroduced fees for foreign exchange accounts, with some charges reaching up to 20 dollars.
Professor Bokpin stressed that mere administrative reforms and regulations are not enough to address the fundamental imbalances between supply and demand. He called for the Central Bank to implement more sustainable solutions to prevent unintended negative consequences.
He cautioned that if the current economic strategies persist, they could inadvertently bolster the underground economy. The increased costs might drive customers to withdraw their funds, potentially steering them towards black market transactions.
