Former Finance Minister Mr Seth Terkper has explained what the Mahama administration did in its attempt to strengthen the local currency, the cedi, against the major trading currencies especially the dollar.
Just as many developed economies around the world did to prop up their currencies, he said, the Mahama administration also established the Ghana Export and Import (EXIM) Bank to give out loans in cedis, to businesses to enable them produce their goods for export.
The more the businesses export, the more the country gets foreign exchange earnings to shore up the cedi, he said.
Explaining the reasons for the cedis’ poor performance against the major trading currencies, while speaking in an interview with Onua FM’s Yaa Titi Okrah on Monday June 7, he said “One of the things I say about Mahama administration is that we looked at this thing and said what do we need to do differently?
“Cocoa farmers are bringing in dollars. We said we go and borrow from US Exim, Turkish Exxim, China Exim, Korea Exim.
“So we asked why can’t we also have our Exim. Because Exim is the bank that provides money for exporters just as COCOBOD helps cocoa farmers.
“So we said those who were not in cocoa sector, let us give them a bank like the others have also done so that they can give them the loans in cedis to produce cashew nuts just like we pay cedis to cocoa farmers to produce.
“You have the Exim bank now supporting them like COCOBOD supports.
“That way you are expanding your are ability to get more dollars just like the other countries have done.”
The government John Dramani Mahama in 2016 established the Ghana Export and Import (EXIM) Bank under (Act 911, 2016) to support the Government of Ghana’s quest for feasible and sustainable export-led economy.
The bank is to facilitate the transformation of Ghana’s economy into an export one, by supporting and developing trade between Ghana and other countries, overseas investments by Ghanaian companies and eliminate critical market failures in the Ghanaian economy, thereby making Ghana competitive in the global marketplace.
The bank currently provides support in the following areas of the Ghanaian economy pharmaceutical manufacturing; poultry production; palm oil and cassava production and processing; pineapple and mango production; cashew, cocoa, shea butter production, and processing.
By Laud Nartey|3news.com|Ghana