IMPUNITY DOES NOT WORK IN ECONOMICS IS CRISIS IN THE FOREIGN EXCHANGE MARKET IMMINENT?

Foroyaa has indicated that the Government has told the whole world that it is committed to a flexible exchange rate system. This gave confidence to dealers in foreign exchange to know what to expect from the market.

The change of policy to a fixed exchange rate system caught many dealers by surprise. Hence the expected outcome is for those who bought dollars at a rate which was above 50 dalasis to the dollar to keep their dollar instead of selling it to buyers at a loss.

It is no surprise that some foreign exchange dealers have suspended operations until the government comes up with a policy which would enable them to operate without a loss.

The Central Bank needs to make an impact assessment of the executive directive of the state house on the dealers and report its findings so that steps would be taken quickly to avoid a crisis in the foreign exchange market which could have devastating effect on imports.