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Financial and foreign exchange markets liberalization in Ghana

Author

Listed:
  • Nii K. Sowa

    (Center for Policy Analysis, Accra, Ghana)

  • Ivy K. Acquaye

    (Center for Policy Analysis, Accra, Ghana)

Abstract

This paper examines whether Ghana, with its imperfect markets and institutional difficulties, has benefited from recent liberalization efforts under SAP. Although the liberalization improved the allocative efficiency of the services provided on the financial and foreign exchange markets, the macro benefits appear very minimal. Inflationary trends in the country continue to be influenced principally by changes in output and money with very minor impacts by both interest rate and exchange rate developments. With exports dominated by only one major primary commodity whose producer price is influenced more by political considerations than exchange rate developments, liberalization of the foreign exchange market does not seem to have impacted favourably on exports. On the other hand, the import-dependent economy of Ghana has not been discouraged by rapid depreciation under the liberalization programme. Copyright © 1999 John Wiley & Sons, Ltd.

Suggested Citation

  • Nii K. Sowa & Ivy K. Acquaye, 1999. "Financial and foreign exchange markets liberalization in Ghana," Journal of International Development, John Wiley & Sons, Ltd., vol. 11(3), pages 385-409.
    • Handle: RePEc:wly:jintdv:v:11:y:1999:i:3:p:385-409
    DOI: 10.1002/(SICI)1099-1328(199905/06)11:3<385::AID-JID590>3.0.CO;2-P
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    References listed on IDEAS

    as
    1. Roe, Alan R & Sowa, Nii K, 1997. "From Direct to Indirect Monetary Control in Sub-Saharan Africa," Journal of African Economies, Centre for the Study of African Economies, vol. 6(1), pages 212-264, March.
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    Cited by:

    1. Romain Houssa & Jolan Mohimont & Christopher Otrok, 2015. "Sources of Business Cycles in a Low Income Country," Pacific Economic Review, Wiley Blackwell, vol. 20(1), pages 125-148, February.
    2. James Heintz & Gerald Epstein, 2006. "Monetary Policy and Financial Sector Reform For Employment Creation and Poverty Reduction in Ghana," Working Papers wp113, Political Economy Research Institute, University of Massachusetts at Amherst.
    3. Aimola Akingbade Urungbodi & Odhiambo Nicholas M., 2018. "The Dynamics of Public and Private Debt in Ghana," Studia Universitatis „Vasile Goldis” Arad – Economics Series, Sciendo, vol. 28(4), pages 24-44, December.
    4. Erasmus L. Owusu & Nicholas M. Odhiambo, 2015. "Financial Sector Reforms and Economic Growth in Ghana: a Dynamic ARDL Model," Contemporary Economics, University of Economics and Human Sciences in Warsaw., vol. 9(2), June.
    5. Adenutsi, Deodat E., 2010. "Financial development, bank savings mobilization and economic performance in Ghana: evidence from a multivariate structural VAR," MPRA Paper 29571, University Library of Munich, Germany.
    6. Akorli, Edem, 2017. "The Effects of Exchange Rates on Trade Balance in Ghana," MPRA Paper 88833, University Library of Munich, Germany.
    7. John Serieux, 2008. "Financial Liberalization and Domestic Resource Mobilization in Africa: an Assessment," Working Papers 45, International Policy Centre for Inclusive Growth.
    8. Philip Kofi Adom & William Bekoe & George Quartey & Kwaku Amakye & Charles Barnor, 2016. "Impact of Market-based Policies and External Fiscal Discipline on Ghana's Inflation," Review of Development Economics, Wiley Blackwell, vol. 20(4), pages 794-816, November.

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