The Bank of Ghana (BoG) is urging export-oriented businesses to reinvest their foreign exchange proceeds within the country to support macroeconomic stability and drive long-term transformation.
Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting, Dr. Johnson Asiama, Governor of the BoG, emphasized that firms that price goods in Ghana cedis or adopt hedged forex strategies not only reduce their exposure to currency volatility but also strengthen the domestic economy.
“Such companies should be supported with tailored credit products, forex liquidity facilities, and preferential procurement policies,” he said.
Dr. Asiama noted that the strength of the Ghana cedi depends on how much value is retained domestically. “The more value we keep within Ghana, the stronger the cedi becomes, and the more sustainable our macroeconomic trajectory,” he added.
He stressed that while stabilising the cedi is essential, true economic progress requires translating forex stability into broad-based growth that empowers businesses, creates jobs, and enhances productive capacity.
To achieve this, he proposed reinforcing forex retention and circularity mechanisms. He called for policies that reward exporters for reinvesting their earnings locally through incentives such as tax breaks, access to affordable credit, and priority in public procurement.
Dr. Asiama also underscored the importance of supporting SMEs to directly participate in international trade.
He called for increased use of fintech-enabled cross-border platforms, digital trade finance, and efficient export documentation systems.
“If we empower SMEs to earn and retain forex, we reduce concentration risks and broaden our forex base,” he said.
Touching on Ghana’s over-reliance on raw commodities, Dr. Asiama called for urgent diversification of the export base.
“In cocoa, we must scale up value-added processing and branding. In gold, we need to accelerate in-country refining and bullion storage. In the oil and gas sector, investment in petrochemicals is critical,” he explained.
He also encouraged greater investment in non-traditional exports and services, including IT, digital finance, education, architecture, and the creative economy. With the right regulatory and market access support, he said, these sectors could become reliable sources of forex and high-quality employment.
Another key point raised was the need to improve efficiency in Ghana’s forex market. Dr. Asiama said the BoG would continue to expand its forward forex auction programme and encourage the development of basic derivatives like swaps and forwards.
“These instruments not only help businesses manage currency risk, but also enhance market depth and reduce panic-driven volatility,” he noted.
