COCOBOD anticipates more than $4 billion in inflows before the year ends, according to Bank of Ghana Governor Dr. Johnson Asiama.
He clarified that the money is a part of a new financing plan that COCOBOD has put in place to help with the purchase of cocoa for the upcoming crop season.
In an exclusive interview with George Wiafe of Joy Business, Dr. Asiama stated that the inflows should increase the Bank of Ghana’s reserves and fortify its capacity to back the local currency in the weeks ahead.
He claims that this development will also let the market know that the central bank is ready to step in and satisfy the needs of commercial banks and enterprises.
Ghana’s foreign reserves were valued at $11.1 billion, according to the Bank’s July Economic and Financial Data report.
For the procurement of cocoa beans, COCOBOD implemented a new finance model in 2023 that required international traders to deposit at least 60% of the advance contract value at the beginning of the season.
A three-decade-old international bank pre-export syndicated loan is replaced by the system.
Purchases from farmers will be financed in part by the merchants’ deposits under an existing agreement with licensed cocoa purchasing companies (LBCs).
Under this structure, traders pay LBCs to purchase cocoa, with COCOBOD serving as a middleman.
Despite recent difficulties, Dr. Asiama insisted that the development shows a positive outlook for the Ghana cedi.
He promised, “As regulator, we have taken the needed actions to ensure that things do not get out of hand.”
He maintained that the macroeconomic climate is still stable and should instill confidence in companies in the future of the cedi and the continuous efforts to increase market liquidity.
“Our net international reserves have not run out, and all the indicators point to a favourable outlook. We currently have it,” he emphasized.
The governor also promised that the central bank will create a market where the cedi can move freely but predictably, rooted in confidence, by implementing “discipline, transparency, and firm regulation.”
He cautioned, meanwhile, that individuals who take advantage of legal loopholes, whether by outsourcing, bolstering the illicit market, or submitting fraudulent import paperwork, will be subject to penalties.
Source: newsthemegh.com