AGI questions govt's measures to deal with the excess circulation of CediBy Joy Business
4/18/2012 10:30:11 AM -
The Association of Ghana Industries (AGI) wants managers of economy to use other long-term measures in dealing with the excess Cedi in circulation.
Finance Minister Kwabena Duffour believes the excess liquidity has resulted in the continuous depreciation of the local currency against the dollar.
The Bank of Ghana last week increased the Policy Rate as part of measures to mop up the excess liquidity.
But AGI President, Nana Owusu Afari, told JOYBUSINESS in an interview that this will only worsen the plight of industries in terms of access to credit.
He said these measures will not resolve the long-term problems of the economy.
'You see we should be looking at the long term measures and not just the short term measuresLong-term growth of the economy depends on manufacturing and agricultural production but we don't appear to have these types of policy interventions'
The Bank of Ghana has increased its policy rate by 200 basis points for the first quarter of this year. The central bank has also indicated plans to embark on an aggressive mopping up of the local currency in circulation with other measures.