A former Deputy Minister of Finance under the Mahama administration, says the recent introduction ¢100 and ¢200 suggests rising inflation against government’s own claim.
Kweku Ricketts-Hagan added that the new higher denominations by the Bank of Ghana (BoG), is not in tune with efforts to achieve a digital and cashless economy.
He said “When you are talking about a digital and cashless economy, you cannot by the same breath go backward and introduce higher denominations of the currency. “
Speaking to journalists at Parliament House, Accra on his impressions on the new GHC 100 and GHC 200 notes, Mr Ricketts-Hagan, said the high denomination generally suggested that inflation was rising but government had said inflation had been tamed, according to its own recent budget.
The former Deputy Minister described the new notes as “high-value denominations,” and that, “Issuing the new 100 and 200 Ghana Cedi BoG can be interpreted as fraudulent.”
He said there was no justification in terms of economics or otherwise for introducing it, adding that an economy where the Government says inflation was going down and even boasting of single-digit inflation, cannot justify the introduction of the high-value denomination.
“The two actions are incompatible and counter-productive. The country’s aim is to reduce the use of physical cash to settle transactions in the economy; the same economy is promoting higher denominations to make it easier to use physical cash to settle transactions. ”
The Lawmaker from Cape Coast South Constituency wondered whether the Bank of Ghana was working with the government to achieve a cashless economy or against it.
“If BoG and Government are saying that these higher notes are not for the market traders but rather people who are higher up the economic food chain, then it’s wrong and a complete waste, because high net worth individuals and businesses who do high-value transactions usually use the banking system.
“I can tell you that the people who will end up using the new notes are individuals who are going print their own counterfeit money, people who are laundering money, and people who will be looking at cleaning bribe monies through legal transactions.
“All these illegal activities will end up raising inflation and increase insecurity in the country, “he said.
Mr Rickett-Hagan accused the BoG of collapsing banks unnecessary with GHS 16 billion of taxpayer’s money and still asking for more money with no ending in sight.
“They have caused job losses, created ill-capitalized and insolvent banking system. And now, as if they have not done enough damage to the banking system, the printing of these new higher notes will eventually make the banking system illiquid and create an adverse effect in access to financing,” the former Deputy Finance Minister said.
He added that the notes would make it easier to keep money at home than save with the banks, therefore reducing bank deposits in the medium term, and would mean less lending to the public; and that would affect banks’ ability to manage money supply and create a liquid economy.
“The idea that the new notes will help shore up the value of the Ghana Cedis by reducing inflation further is an economic illusion being pursued by the managers of the economy,” Mr Ricketts-Hagan said.
- EC member dragged to Supreme Court over alleged NPP affiliation
- Canada implements visa-free travel for more countries excluding Ghana
- #KenMustGo: Entire caucus would’ve to take a decision on Finance Minister – Majority Leader
- I feel victimized; what wrong have I done in this country? – Prof. Frimpong-Boateng
- Assin North by-election: NPP elects Charles Opoku as parliamentary candidate
- Parliament approves Gertrude Torkornoo’s nomination as Chief Justice
- Rwanda’s President sacks more than 200 soldiers including generals
- Playback: Prof Frimpong-Boateng speaks about his arrest by Special Prosecutor
- Nigerian states cut working week to three days
- 2023 Ghana Football Awards nominees announced; see full nominees list
- Ofori-Atta must be supported to fully implement IMF programme – Analysts
- Crude oil contributed 3.7% to Ghana’s GDP in 2020 – EITI Report
- U-20 WWCQ: CAF releases format and procedure for Thursday’s draw
- Ugandan president tests positive for Covid
- Today’s front pages: Thursday, June 8, 2023
- Ghana’s energy security remains our topmost priority – Energy Minister to investors in London
- I played the role of loving wife but behind closed doors, my husband’s secret was destroying me
- I am not complicit in the illegal mining trade – Prof. Frimpong Boateng
- Why he keeps you around even if he doesn’t want a relationship
- Woman dies after eating poisoned chocolates sent by her ex-boyfriend’s Jealous lover
- Rwandan President Kagame sacks military top brass
- Tunisian black women: ‘My skin colour says I don’t belong’
- Nigerian states cut working week to three days
- I did my job; I tried to make Ghana a better place – Prof Frimpong-Boateng
- Burning Changfans alone will not halt illegal mining – Prof. Frimpong