The Director of Research at the Institute of Economic Affairs, Dr. John Kwakye is warning of further hikes in inflation if the Bank of Ghana phases out the 1 and 2 notes as planned.
In a tweet, he said the planned move will not only put pressure on the 5 note but will also trigger higher inflation.
“Phasing out 1 and 2 cedi notes from the economy as planned by BoG will not only put pressure on the 5 cedi notes, but will also further fuel inflation”
Dr. Kwakye who is an immediate past member of the Monetary Policy Committee of the Bank of Ghana explained further that the country may undertake a redenomination of the local currency again in the future if it does not address the rapid depreciation of the cedi and inflation.
“If we don’t rein in inflation and cedi depreciation, it won’t be long before we undertake another redenomination.”
The country’s inflation is one of the highest on the continent so far this year.
It hit 33.9% in August 2022, the highest in 21 years, data from the Ghana Statistical Service (GSS) revealed.
This is expected to increase the cost of borrowing by raising interest rates further, and consequently trigger increase cost of living and doing business.
Latest Stories
-
5 dead, over 14 injured in gory accident near Obuasi
8 mins -
Cleaner to stand trial over Cashier’s death at Twumasiwaa Hospital
26 mins -
Global financial institutions call for comprehensive treaty to end plastic pollution
38 mins -
Electoral processes, ethnoreligious cleavages threats to Ghana’s 2024 election – WANEP
38 mins -
Harnessing intuition, reasoning, and memory to navigate the AI age
1 hour -
Azumah Nelson Sports Complex: Gov’t advised to terminate project contract
1 hour -
Dumsor will be a thing of the past soon – Bawumia assures
1 hour -
Why do you always run to the media? – EC quizzes IMANI
2 hours -
Francis Doku charges government to market traditional festivals
2 hours -
Ghana records an average of 9,900 snakebites annually
2 hours -
Fella Makafui sets record straight on relationship with D-Black
2 hours -
CEGENSA celebrates mentors for nurturing UG’s upcoming female leaders in academia
2 hours -
Dr. Bawumia begins Eastern regional tour with religious leaders in Akropong
2 hours -
Akosombo Dam Spillage: Would victims have been ignored if they were in swing constituencies – Ablakwa fumes
2 hours -
Have capacity to influence policy – former MiDA boss to engineers
2 hours