Ghana Finance Professor Supports IMF Call to Limit Central Bank Currency Controls
A University of Ghana finance professor has endorsed the International Monetary Fund’s recommendation for Ghana’s central bank to reduce its foreign exchange market interventions. The academic warning comes as the Bank of Ghana faces pressure to step back from direct currency controls.
Professor Godfred Bokpin, who teaches Finance and Economics at the University of Ghana, argues that excessive central bank intervention distorts natural price signals in the foreign exchange market. The professor warns this government control creates artificial market conditions that drive currency trading into unofficial channels.
The IMF recently advised the Bank of Ghana to scale down its foreign exchange interventions as part of broader economic reforms. The international lending body typically recommends market-driven exchange rates over government-controlled currency systems.
Bokpin’s support highlights growing concern that central bank controls fuel black market currency trading. When official exchange rates differ significantly from market values, traders often seek alternative channels for foreign currency transactions.
The debate reflects Ghana’s ongoing economic challenges as the country works with the IMF on financial stabilization measures. Currency market interventions remain a contentious policy tool, with supporters arguing they provide stability while critics claim they create market distortions.
The Bank of Ghana has not yet responded to the professor’s comments or indicated whether it will adjust its current foreign exchange intervention policies.
