Policy to block leakages in remittance inflows in the offing

The Bank of Ghana is set to implement a policy to block leakages in remittance inflows as part of efforts to further stabilise the local currency. 

The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, who disclosed this, explained that although the details of the policy would be announced in due course, its goal was to ensure that inflows from remittances were accurately and efficiently accounted for.

“When I got appointed, I remember I told the President there are two things I think could stabilise the cedi - remittances and blocking of leakages when it comes to gold exports.

“So far, with the GoldBod, we believe that smuggling and leakages will reduce, and we can see the benefit. The next plan is to tackle remittance inflows.

“I will not go into details about the platform we intend to put in place, but our objective is to ensure that every dollar that is remitted is made to account,” the Governor said at a corporate forum of the Association of Ghana Industries (AGI), in Accra last Tuesday.

The forum, which is an initiative of the association, formed part of a series of high-level engagement platform between industry leaders and key policymakers.

It featured a keynote session with the Governor, with other discussions focusing on pressing economic issues, particularly the recent appreciation of the cedi against the US dollar and its implications for the economy and the industrial sector.

They also deliberated on critical economic and business challenges in the country.

Dr Asiama said his aim was to reduce the national lending rate to below 10 per cent before completing his four-year term in office.

He said achieving that goal would create a more favourable environment for borrowing, encourage business expansion and also boost economic activities across the country.

The Governor stressed the need for renewed confidence in the local currency, saying that national pride and economic discipline were key to stabilising and strengthening the cedi’s value.

“Going forward, we are committed to adopting a new approach in the way we operate.

When businesses thrive, the benefits will extend beyond individual companies to society as a whole.

It will create jobs, boost incomes and enhance overall development.

“To support this, we pledge to implement clear and transparent policies that foster trust, promote innovation and drive sustainable business growth,” Dr Asiama added.

Commendation

The President of AGI, Dr Humphrey Ayim-Darke, commended the Governor and the leadership of the central bank for their proactive efforts in revitalising the country's economy within the few months they had been in office.

Members of the Association of Ghana Industries

He said that the strategic interventions, including monetary policy adjustments and financial sector reforms, had all played a significant role in restoring economic stability and fostering investor confidence to support the growth trajectory.

“At a time that we are seeing the economy demonstrating resilience and growth, it is important that we as industries or the private sector engage BoG, given that some of our members are into exports, and so, fast appreciation of the cedi has an impact on their operations,” the president added.