The Dynamics Of Financial Liberalisation In Ghana

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Erasmus L. Owusu
Nicholas M. Odhiambo


Economic Growth, Financial Liberalisation, Ghana, Financial Development, Stock Market Development and Foreign Currency Deposits


This paper examines the role of financial liberalisation policies in Ghana and it finds that financial liberalisation policies have had positive effects in Ghana. However, the paper also finds that the same financial liberalisation policies have brought with them a number of interrelated problems that should be addressed by the country. These include the large interest rate spread, an increase in foreign currency deposits, constant depreciation of the domestic currency, a drastic increase in imports, and the reduction of credits to the productive sectors of the economy, as well as the problem of high lending rates which has discouraged investment in the productive sectors of the economy. The extent to which the government should intervene in the financial market to guide credit is still under discussion. The paper concludes that, on the whole, financial liberalisation policies have had beneficial effects in Ghana.


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