New law to make oil, mining companies pay foreign exchange earned first to local banks coming – Akufo-Addo

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President Nana Addo Dankwa Akufo-Addo has said that the government is working with the Bank of Ghana (BoG) and the oil producing and mining companies to introduce a new legal and regulatory framework to ensure that all foreign exchange earned from operations in Ghana are, initially, paid to banks domiciled in Ghana.

The President announced this in his address to the nation on Sunday October 30.

This forms part of the measures being introduced by the government to tackle the economic challenges especially the Cedi’s poor performance against the Dollar

The Cedi’s woes have been partly blamed on repatriation by multinational companies.

Mr Akufo-Addo said “The following actions have been taken thus far: 1) enhanced supervisory action by the Bank of Ghana in the forex bureau markets and the black market to flush out illegal operators, as well as ensuring that those permitted to operate legally abide by the market rules.”

“Already some forex bureaus have had their licenses revoked, and this exercise will continue until complete order is restored in the sector,” he said.

The other measures are “Fresh inflows of dollars are providing liquidity to the foreign exchange market, and addressing the pipeline demand;

“The Bank of Ghana has given its full commitment to the commercial banks to provide liquidity to ensure the wheels of the economy continue to run in a stabilized manner, till the IMF Programme kicks in and the financing assurances expected from other partners also come in;

“Government is working with the Bank of Ghana and the oil producing and mining companies to introduce a new legal and regulatory framework to ensure that all foreign exchange earned from operations in Ghana are, initially, paid to banks domiciled in Ghana

“The Bank of Ghana will enhance its gold purchase programme.”

By Laud Nartey|3news.com|Ghana