The Central Bank of Ghana (BOG) has withdrawn its foreign exchange (FX) financial backing given to banks, customers and other financial institutions for the importation of some essential commodities.
According to BOG, the essential commodities affected comprised of rice, vegetable oils, poultry, toothpicks, bottled water, fruit juice, pasta, ceramic tile and other non-critical goods.
BOG further explained its withdrawal from providing forex support does not mean importers are banned totally from the importation of the listed items, rather there would be no assistance in terms of funding from the government.
“In accordance with the President’s directive issued at his recent address to the nation on the Ghanaian economy, on October 30, 2022, BoG will no longer provide FX support for the imports of rice, poultry, vegetable oils, toothpicks, pasta, fruit juice, bottled water, ceramic tiles and other non-critical goods. Please be advised and act accordingly.”
The Central Bank of Ghana.
BOG noted that, this initiative or policy would be a means of reducing the cedi depreciation challenge being faced by the country. The Bank indicated that, the policy would help reduce the country’s exposure to imports and subsequently reduce the high demand for US dollars and other major foreign currencies.
Need For Import Reduction
The National Chairman of the Poultry Farmers Association, Victor Oppong, speaking on poultry importation indicated that, every year about 600,000 tonnes of frozen chicken were brought into the country whereas domestically reared poultries are patronized at a very low rate.
“On an annual basis, we receive 600,000 tonnes of frozen chicken, which is made up of 569 million birds valued at $600 million. We are saying that the import is collapsing the poultry industry as well as putting more pressure on the local currency.”
Mr. Victor Oppong
BOG making reference to the last address to the nation made by President indicated that, President Akuffo-Addo bemoaned the import-dependency nature of the economy and pledged to limit the act.
The government was working to review the standards required for imports of major products to boost local production. Reviewing of the management of the country’s FX reserves was underway to ensure that products such as rice, bottled water and fruit juice were produced locally, President Akuffo Addo disclosed.
According to BOG, withdrawing supports for the importation of these major local products is one of the strategies taken to help restore and sustain macroeconomic stability, and as well ensuring debt sustainability to promote durable and inclusive growth while protecting the vulnerable in the society.
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