Professor peter Quartey , Director of Institute of statistical, social and Economic Research (ISSER) of Ghana (BoG) is likely to increase the policy rate of 19% at it’s emergency meeting today Wednesday, August 17.
He said, both Foreign and local investors will be attracted to do business in the local economy if that should happen.
Speaking with Alfred Ocansey on TV3 on Ghana Tonight show, Tuesday August 16, Prof Quartey said ” certainly, they will look at the economic temperature , they will look at exchange rate depreciation , they will look at inflation expectation and may likely increase the policy rate. But should that happen, the idea is basically to mop up excess liquidity , increase in the rate might attract investors both local and foreign investors”.
Also,the BoG has identified five key reasons for the woes of local currency.
These are the strength of US dollar, Investor reaction to credit Rating Downgrade, Non- Roll over of Maturing bonds, the sharp rise in crude oil prices and impact on the oil Bill loss of External Financing.
He added that, the measures introduced to resolve these according to the BoG are, the ” Gold Purchase program to increase foreign exchange reserves, special foreign Exchange Auction for the Bulk Distribution companies (BDCs) to help with importation of petroleum products.
BoG is also supporting the banking sector and the Cocoa loan is also expected to last quarter of the year.
These measures will go a long way to increase the foreign exchange position of the central Bank , a statement issued by the BoG .
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