AGI Expects Boost In Business Confidence

Seth Twum-AkwaboahThe Association of Ghana Industries (AGI) says it anticipates that the recent decision by the Bank of Ghana to review its foreign exchange measures will boost business confidence and cedi recovery.

A statement issued by the AGI in Accra said it was hopeful that the reversal of the rules it instituted in February, this year would help enhance business assurance and recovery of the cedi, while incentivising forex transactions through the banks.

It said the initiative should reassure the private sector and the general public that foreign exchange paid into our banks were welcome and would be secured.

“AGI appreciates this bold decision which gives the indication that the Central Bank has taken into account the recommendations made by stakeholders, Industry and the business community as a whole,” the statement said.

The AGI urged the central bank to effectively supervise, monitor and support the financial institutions to ensure that the reversal of the foreign exchange measures was fully complied with.

“It is imperative for Government to also take steps to complement Bank of Ghana’s efforts towards achieving macro-economic stability,” it said.

The Association also reiterated the urgent need to focus maximum attention on growing our exports, adopting import substitution strategies and promoting the patronage of Made-in-Ghana products to strengthen the cedi.

The Bank of Ghana recently reversed its foreign exchange rules removing the limit of $1000.00 on over-the-counter foreign exchange cash withdrawal.

The reversal also allows exporters to continue to repatriate in full export proceeds in accordance with the terms agreed between the trading parties and such proceeds shall be credited to their Foreign Exchange Accounts (FEAs) and converted on need basis.

The threshold for transfers abroad without initial documentation remains at $50,000.00. Where documentation in respect of a transfer remains outstanding, any subsequent import transaction by an importer, irrespective of value, shall only be made on prior provision of documentation required for the current import transaction.

Importers who use non-cash instruments (plastic cards) may continue to load up to $50,000 to meet their legitimate needs abroad subject to the necessary documentation requirements.

Foreign currency denominated loans may be granted by resident banks to their customers subject to their own internal procedures and processes and in compliance with the risk management guidelines of the Bank of Ghana.

The AGI is a voluntary business association of over 1200 members, made up of small, medium and large scale manufacturing and services industries in agro-processing (food and beverages), agri-business, pharmaceuticals, electronics and electrical, telecommunications, information technology, utilities, service industries, transport, construction, textiles, garments and leather, banking and advertising.

As the leading voice of manufacturing industries in the country, AGI is dedicated to advocating policies that advance the growth and development of industries; facilitating international trade through exhibition of member products in countries across the sub-region; and strengthening national industry associations through the sharing of knowledge, experience and critical information

It also provides members with a vast network of contacts, especially in the West African sub-region and hosts the industry and technology exhibition to promote members’ goods, among others.

AGI does these through analysis and monitoring of policy impact on businesses in order to support and influence legislations or other measures considered to be favourable for the advancement of industry; or challenge policies which are considered inimical to industrial growth and development; presenting industry’s position papers on specific policies to government and stakeholders; and providing quality service to member-companies, particularly small and medium-scale enterprises in order to bring about continuous improvement in their operations.

By Times Reporter

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