By P. K. Yankey
Takoradi (W/R), Aug. 09, GNA – Mr Yaw Adu-Gyamfi, a Governance Expert, has urged the Central Bank of Ghana, to create a local currency for internal use, to facilitate financial transactions in the country in the wake of the economic downturn.
He suggested that the internal complementary currency could only be used within Ghanaian borders for the economy as a replacement for going for loans.
Outlining the benefits to the Ghana News Agency in an exclusive interview, Mr Adu-Gyamfi said the local currency could be used to target specific industrial and Agricultural sectors without Foreign Direct Investment (FDI).
It would also help to reduce imports and boost exports.
“The local currency can lead to economic resilience as a community can strengthen its local economy and become more resilient to external economic shocks,” he said.
He explained that once the currency circulated within the community, it would encourage local spending and support local businesses.
Mr Adu-Gyamfi indicated that the local currency could also incentivise local trade and encourage people to buy goods and services from local businesses.
He added, “this helps to keep money circulating within the community creating a multiple effect and boosting economic activity”.
The complementary currency, he added, could foster a sense of community and social cohesion, while encouraging people to interact with one another, build relationships and support local initiatives which could lead to stronger community bonds and a greater sense of belonging.
The local currency could provide a lifeline for Small and Medium Scale Enterprises (SMEs) that might struggle to compete with larger corporations, as they attract more customers and gain a competitive edge.
“Complementary currency can promote sustainable practices and reduce carbon footprints,” he added.
He said the local currency could empower individuals and communities by giving them more control over their economic systems.
“Local currency often encourages innovation and creativity within a community to stimulate the development of new products, services and business modules that caters for the specific needs and preferences of community members.”
Mr Adu-Gyamfi said during times of economic downturn, complementary currency could provide a boost to the local economy, stimulate economic activity and create jobs.
Meanwhile, efforts to reach the Bank of Ghana to shed light on the story, proved abortive as the Western Regional branch in Takoradi referred our reporter to the Central Bank in Accra.
GNA