Borrowing Will Become A Thing Of The Past If Ghanaians Are Disciplined- Economic Analyst Advises

Economic and fiscal policy analyst, Julius Gyimah, has advised that if Ghanaians are disciplined, borrowing of funds by government will become a thing of the past.

He noted that the country must ensure that all boxes that bring profit to the country is ticked.

“Ghana’s inflation at the beginning of the year stood at 53.6%…and we know the Bank of Ghana controls our liquidity, so they always need to ensure that there’s supply of money in the market. However, when there’s essence of money in the marker, it amounts to inflation which goes against the economy”, he said.

He explained that when there’s essence of money in the system, traders turn to increase the price of their goods because they know that buyers will purchase regardless because they can afford it. This is why the Bank of Ghana had to step in to ensure that the policy rate was increased and thus, when people sought for capital from financial institutions or commercial banks, the interest rate became high. This will deter people from going to the commercial market for money because their rate has increased.

“When this happens, we will focus on the internally generated funds to make business. Bank of Ghana also ensured that the monetary policy matched with the physical side of the finance ministry“, he noted.

He disclosed that by November, Ghana will receive the next tranche of fund from the IMF.