Currency change rumours cause price hike in parts of Ghana

Rumours spreading in parts of the Upper West region that the New Patriotic Party (NPP) government is to introduce new currency by the end of this month have led to sharp price increases in local staple food items in some parts of the region.

The rumours which have gained currency, particularly in the western parts of the Wa district, have resulted in the refusal by farmers to sell their foodstuff to market traders for fear that they might not be able to exchange their monies for the new currency when it comes into effect.

This came to light when the Ghana News Agency interviewed a cross-section of grain sellers to find out the causes of price hikes in foodstuff in most parts of the region. A bowl of guinea-corn, which sold between 2,800 and 3000 two weeks ago, now sells between 3,500 and 4,000 while maize, which sold between 1,800 and 2,000 a bowl, now sells at 2,600.

Madam Memuna Abubakari, a grain seller at the Wa central market said most of the farmers in the rural areas contend that during a similar money exchange exercise in the late 1970s, they suffered a great deal as they could not change their money before the deadline.

She mentioned Jambusu, Dorimon, Lassia-Tuolu, Wichiau and Dabo all in the Wa district as some of the villages where farmers have refused to sell their food. She therefore called on the government to clear the air on the issue in order not to allow a few people to create unnecessary panic in the rural areas.

"I only hope that it is not a well-hatched plan to drag the new government into disrepute'', Madam Memuna told the GNA. Mr William Nambia, regional co-ordinator of Global 2000 of the Ministry of Food and Agriculture said he also heard that the government intends to change the country's currency but noted that the allegation that there are fake currencies in the system is the cause of the rumour.

He attributed the increase in the price of the staples, especially maize, to the high cost of production, which is making fewer farmers to remain in production. Mr. Nambie said it costs over one million cedis to produce an acre of maize.