Time out for BoG
Last week, the government created a platform for some individuals to converge at Senchi in the Eastern Region to discuss how to end the economic quagmire that has bedeviled the country in the last few years.
Dubbed the National Economic Forum, the participants from all walks of life eventually came out with a 22-point communique known as the ‘Senchi Consensus.’
The communique is expected to serve as a guide to governments; present and future, in their quest to seek economic emancipation for the people.
Key among the pointers was the call on the Bank of Ghana (BoG) to expedite action on the foreign exchange measures it instituted in February, this year.
The bank was also tasked to take speedy and appropriate action to restore confidence and relieve the unintended consequences of the measures on the business community and the economy as a whole.
The call comes at a time when experts are arguing that none of the directives issued by the central bank to halt the incessant fall of the cedi against the major foreign trading currencies is holding. For instance, in the last five months, the cedi has witnessed more than a 22 per cent fall against the United States dollar, the major foreign trading currency, and this has created more anxiety in the system.
What is worse is that some banks have begun complaining about inadequate inflows of foreign exchange as their exporter-customers are holding back their proceeds from the sale of their goods outside the country.
According to the banks, the BoG’s measures had slowed deposits into foreign currency accounts (FCAs), while foreign inflows from foreign exchange earnings abroad has dwindled because of the unwillingness of exporters to transfer their proceeds. (See front page).
This may not be the only challenge as far as the measures of the central bank are concerned.
Although the bank announced its intention to review the directives, it is yet to announce any date for that exercise; a situation which is keeping everybody, particularly industry players, in suspense.
The GRAPHIC BUSINESS, therefore, entreats BoG to heed the calls of the various groupings and industry, especially the recommendations from Senchi, as a matter of urgency, to review the measures. Once it is hurting the economy, there is no reason for the bank to continue an action that cannot resolve the very important problem at stake.
It is our hope that the full report from the Senchi Consensus, which is expected to spell out a detailed guide on the matter at stake, would be made available to the central bank to serve as guide for the review of the measures the bank instituted earlier.
