A top finance professor has slammed Ghana's central bank for messing up the country's money exchange system. Professor Godfred Bokpin from the University of Ghana Business School says the Bank of Ghana meddles far beyond what it should do in foreign currency trading. The professor made these shocking claims during a television interview after international money experts warned Ghana about its bad banking practices. He argues that the bank creates chaos by trying to control exchange rates while also playing in the same market it regulates. The result has been a complete mess with wildly different rates across the country.
Bokpin revealed the stunning gap between what different places charge for exchanging dollars. Banks might give people around 10.1 or 9.8 cedis per dollar when selling foreign currency. However, the small money changing shops called forex bureaux charge rates that are 20 to 25 percent higher than the banks. The professor calculated that the overall difference between bank rates and bureau rates reaches a massive 35 percent gap.
The finance expert believes this crazy system happens because people have lost trust in the official exchange rates. He says traders and ordinary citizens hunt for better deals at different locations because they know the official rates do not reflect the real value of money. The professor wants the central bank to step back and let market forces determine fair exchange rates instead of trying to control everything.
Bokpin revealed the stunning gap between what different places charge for exchanging dollars. Banks might give people around 10.1 or 9.8 cedis per dollar when selling foreign currency. However, the small money changing shops called forex bureaux charge rates that are 20 to 25 percent higher than the banks. The professor calculated that the overall difference between bank rates and bureau rates reaches a massive 35 percent gap.
The finance expert believes this crazy system happens because people have lost trust in the official exchange rates. He says traders and ordinary citizens hunt for better deals at different locations because they know the official rates do not reflect the real value of money. The professor wants the central bank to step back and let market forces determine fair exchange rates instead of trying to control everything.
