A renewed national call has been made for full compliance with Ghana’s foreign exchange laws and a thorough reform of current practices, as the country moves to protect the value of its local currency, the Ghanaian cedi.
Charles Kwesi Mensah, Managing Partner at Trust Consult Limited, has issued a clarion call to exporters, investors, and financial institutions to align with the Foreign Exchange Act, 2006 (Act 723), and support a collective national effort to strengthen Ghana’s economic foundation.
In an opinion piece titled “Saving the Local Currency: A Call for Compliance and Reform in Foreign Exchange Practices,” Mensah criticized the ongoing practice of allowing exporters, particularly in the natural resources sector, to retain large portions of their foreign exchange earnings abroad. He warned that such arrangements undermine economic resilience and increase pressure on the cedi.
“Ensuring that export earnings return home is not only a legal obligation but a patriotic one,” Mensah stated, urging that all exporters, including mining and oil companies, be mandated to repatriate 100% of their proceeds within the legally regulated timelines.
He emphasized that while some retention agreements may be justified by offshore obligations, they must be balanced with the national interest. According to Mensah, full compliance with the law creates a level playing field and reinforces trust in Ghana’s regulatory system.
Investors Called to Share Responsibility
Mensah also directed a strong message to investors, encouraging them to support reforms that promote economic sovereignty and currency stability. He argued that Ghana becomes a more attractive and predictable investment destination when its currency is strong and regulations are enforced fairly.
“Investment should mean partnership, not only in profit but in responsibility,” he noted.
Bank of Ghana’s Role Critical
The article applauds the Bank of Ghana’s efforts to oversee the foreign exchange regime and calls on the central bank to intensify enforcement of the Letter of Commitment (LOC) platform. By transparently tracking exporter compliance and applying penalties where necessary, the Bank can restore confidence and boost foreign exchange reserves, Mensah argued.
“Ghana’s future prosperity hinges on our ability to steward our resources wisely,” he concluded, describing the cedi’s protection as a collective responsibility.
As Ghana navigates global economic uncertainties, the push for stricter enforcement and reforms in foreign exchange practices is seen as a timely measure to preserve the cedi, promote fair trade practices, and attract long-term investment.
