Economics professor Godfred Bokpin is warning that the new measures by the Bank of Ghana (BoG) to clamp down on black market operators in the forex trade may not succeed in stopping the depreciation of the Ghana cedi to stabilise the economy.
In its latest directives, all persons wishing to transact forex business must do so with a Ghana Card, and unlicensed operators will be arrested and prosecuted.
However, the Professor of Finance at the University of Ghana, argues that these measures may not achieve the intended effect.
He explained that the black market provides an interface between the underground economy driven by corruption and the formal economy.
“The reality is that if you create the kind of economy that we are presiding over, it is going to be difficult to eliminate the black market.
“So, if you don’t deal with corruption and the rest, it is going to be difficult to think that merely by dealing with the black market, you will sustainably be eliminating black market effects in your economy. It is not going to work,” he said.
Professor Bokpin questioned the sustainability of this move, pointing out that the BoG’s previous efforts to address black market activities were not sustained.
“Who stopped them? Why was it a nine-day wonder? What gives us the impression now that this move will be sustainable?” he questioned.
He also believes that the Bank of Ghana has a role in addressing this situation by ensuring that they harmonize the official rates and transactional rates in the market.
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