Reports indicate that banks in the country have withdrawn foreign exchange (particularly dollars) support to customers involved in the importation of rice, chicken, cooking oil, ceramic, bottled water, fruit juice and other goods.
Reports further indicate that, the withdrawal of foreign exchange support to importers by banks, follows a directive from the Central Bank.
The directive from the Central Bank, is said to be contained in an electronic message to banks which reads, “In accordance with the President [Akufo-Addo] directive issued at his recent address to the nation on the Ghanaian economy, on Sunday 30th October, 2022, the Bank of Ghana 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”.
“The government will, in May 2023, that is six (6) months from now, review the situation. We must, as a matter of urgent national security, reduce our dependence on imported goods, and enhance our self-reliance, as demanded by our overarching goal of creating a Ghana Beyond Aid.
“Much as we believe in free trade, we must work to ensure that the majority of goods in our shops and marketplaces are those we produce and grow here in Ghana.
“That is why we have to support our farmers and domestic industries, including those created under the 1-District-1-Factory initiative, to help reduce our dependence on imports, and allow us the opportunity to export more and more of our products and guarantee a stable currency that will present a high level of predictability for citizens and the business community,” the Central Bank noted.
President Akufo-Addo in his address on Sunday October 30, said the government was reviewing the standards required for imports into the country, prioritise the imports, as well as review the management of the foreign exchange reserves, in relation to imports of products such as rice, poultry, vegetable oil, toothpicks, pasta, fruit juice, bottled water and ceramic tiles, and others which, with intensified government support and that of the banking sector, can be manufactured and produced in sufficient quantities in Ghana.
The move by the Central Bank, from the viewpoint of economic analysts, will be seen as a policy that will help reduce the country’s exposure to imports.
This will subsequently reduce the high demand for US dollars and other major foreign currencies, and consequently slowdown the rapid depreciation of the cedi.
Source: norvanreports
