Economist and Associate Professor at the University of Ghana Business School, Professor Lord Mensah has alleged that investors who would withdraw their monies from banks are likely to face inflation.
According to him, inflation has risen above the investment interest rate hence monies withdrawn from banks would be obstructed by inflation.
Speaking to Samuel Eshun on the Happy Morning Show, he mentioned, “You may lose your money absolutely unless you have an alternative investment that can yield more for you than inflation.”
“Ghana with the economic situation now you won’t get any investment so you are better off keeping it to get part of the inflation being scrapped by the interest rate structure” he added.
Sharing his views on the government’s measures to minimize the impact of the country’s domestic debt exchange on investors, he furthered, “having such an initiative you’re going to get all sort of reactions from the investor community. Some may not understand the dynamics very well.”
He therefore charged the banking sectors in collaboration with the media institutions in Ghana to educate the public on investments and related issues.
On Sunday, December 4, 2022, the Finance Minister, Ken Ofori-Atta in a press conference assured Ghanaians that treasury bills (T-bills) and bond holders will not be affected by the government’s plans to minimize the impact of the country’s domestic debt exchange on investors.
“Treasury bills are completely exempted and all holders will be paid the full value of their investments on maturity.”
This comes on the back of government plans to announce the full details of Ghana’s domestic debt exchange programme on Monday, December 5, 2022.
By: Miriam Akuetteh
