Ghana Not Broke – Gold Coast Holdings CEO

The CEO of Gold Coast Holdings, Kwame Ofori Asomaning, has suggested the printing of more local currency as the solution to Ghana’s financial challenges.

“For a foreign country that issues its own currency, affordability is not a problem,” Mr. Asomaning argued on Citi TV’s Point of View.

Ahead of the Mid Year Budget reading, the nation’s financial constraints have been under scope amid speculation that taxes are going to be increased to fund government projects.

But Mr. Asomaning insisted that “Ghana government can never tell me that it is broke because the government of Ghana can issue currency at an unlimited quantity.”

He however noted that such a measure would work as long as expenditure is inwards.

“As long as they are spending this in the country, Ghana, and as long as there are resources available for us to spend the money on, the government of Ghana can pay for anything they want to spend on.”

Unlike individuals who encounter budget constraints, such challenges could not befall the government because “it is a currency issuer and not a currency user,” Mr. Asomaning explained.

“Take for instance MTN or Vodafone or any of the companies that issue their own credit and give it people, they will never run out of credit.”

Printing of currencies to mitigate financial crises has been known to result in massive inflation, like in Zimbabwe.

But Mr. Asomaning does not foresee such challenges because the printing of more money would be demand centered, not cost driven.

“We have alternative places to invest. There is more room for spending. Inflation comes only when we have no room for spending, and we are spending on the same item.”

The only area Ghana can claim to be broke in is “when it comes to our foreign indebtedness,” he said.

On the other hand, the Chief Executive Officer (CEO) of Dalex Finance, Kenneth Thompson, wants Ghanaians to accept that the country is broke .

He urged the government to take immediate steps to fix what he called a “time bomb.”

“Ghana is broke, let's face up to the reality and deal with it and stop this long English,” he said.