Prof. Godfred Bokpin is an economist
Economist, Professor Godfred Bokpin has called for the establishment of an oversight committee to monitor interbank foreign exchange rates and those on the black market.
He argued that the persistent disparities between official and parallel market rates are a major contributor to the instability currently affecting the foreign exchange market.
His remarks follow the recent depreciation of the cedi, which had shown signs of stability during the early months of the year.
Bokpin said; “What we need now is an oversight committee that will track interventions in the foreign exchange market and bring transparency to how the cedi is being managed.”
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He noted that “Such a body, properly constituted, will also help restore confidence and protect exporters who are losing competitiveness because of these gaps.”
On the constitution of the committee, the economist proposed that the committee should include representatives of government, the Bank of Ghana (BoG), exporters, importers and independent economists.
While noting that this may not be an easy feat, a phased approach, including enforcing existing laws, tightening oversight and keeping policy signals consistent, will be needed.
“Without these, the black market will continue to thrive,” he cautioned.
Prof Bokpin explained that these measures are necessary to cushion exporters against the swings in the market.
“When the cedi appreciates sharply and then depreciates within a short period, companies cannot plan. Exporters, in particular, are exposed because they earn in foreign currency but spend in cedis, and the sudden swings erode their margins.
“This is about protecting exporters, safeguarding jobs, and creating the predictability that businesses need to survive,” he emphasised.
SSD/SA
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