Micro-finance crisis: Financial expert predicts astronomical cedi depreciation in the coming months

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Financial expert, Mr. Samuel Gameli Gadjo, has predicted an astronomical depreciation of the cedi currency within the months of November to December 2019 and significant job losses due to the ongoing financial overhaul by the Bank of Ghana in the micro-finance sector.

According to the financial guru, the Ghanaian economy would begin to reap effects of the Bank of Ghana’s programme on the micro-finance in six months time since most of the foreigners in the micro-finance would withdraw their capital and change it into dollars thereby putting pressure on the cedi. Mr. Samuel Gameli Gadjo however insisted that the situation would be improved in the long run and Ghana would be the ultimate beneficiary of the changes.

Mr. Samuel Gameli Gadjo, who is a lecturer at the University of Education at the Winneba campus who made the disclosure during an interview with Agya Owusu Ansah on Otec FM’s afternoon political shows ‘Dwabrem’ on Tuesday, June 4, 2019, commended the Bank of Ghana for the proactive manner it adopted in dealing with the financial crisis stating it would serve the interest of Ghanaians in the long run in spite of the challenges at the moment.

The central Bank on Friday, May 31, 2019, announced that it has revoked the licenses of some 347 micro-finance institutions in the country and 39 micro-credit institutions in operations.

A statement from the Bank of Ghana said some of the institutions were insolvent while others had been out of operation for some time now, adding the Registrar of Companies at the Registrar General’s Department about the revocations.

Notwithstanding, Mr. Samuel Gameli Gadjo rallied support for the Central bank for the decision since more jobs and investments would have been lost completely noting the 900 million cedi facility earmarked for the Micro-finance would protect the customers’ investments and interests as well.

“For now Ghanaians would feel the negative impact of the Bank of Ghana revocation but in the long run things would be normalized. The intervention would extremely protect the interest of the customers,” he said.

He added that “those who may lose their jobs at the moment there is the hope that more people would be employed when things get improved and it is better the Central bank becomes proactive.”

Customers of the micro-finance in questions have been storming the premises of the banks to demand their claims sparking confusion ever since the Bank of Ghana made the announcement.

Source: Ghana/otecfmghana.com/Benedict Asante-Yeboah

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