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Printing new cedi notes partly cause of high inflation – UCC lecturer

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Seyram Kawor, a Senior Lecturer in Finance at the Business School of the University of Cape Coast (UCC), is recommending that the Bank of Ghana reduce the rate at which it prints money to support government expenditures.
He argued that the Bank of Ghana’s currency printing contributed in part to the current inflationary figures recorded by the Ghana Statistical Service.
Mr. Kwaor stated that the decision goes against all efforts to transform Ghana’s payment ecosystem into a digital one, calling it “we want to go cashlite society where people will not be using cash,” calling the move “counterproductive.”Then suddenly, you’ve decided to print new 100- and 200-cent denominations.Consequently certain things that might be purchased at ₵95 may go up to ₵100.These things happen naturally, he stated.
According to Mr. Kawor, it is common knowledge in economics that once the money supply is increased through printing, prices always follow.
He said that the situation gets worse when the economy’s production doesn’t trigger the money supply.
He stated, “It’s a fundamental economic issue,” adding, “Once you print currency, prices will go up.”
Prices will rise once currencies are printed.We have no avocation for printing bigger division.We are currently paying that price,” he emphasized.

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