A member of the Monetary Policy Committee (MPC) of Bank of Ghana, has proposed that Bank work with foreign Entities to stagger their proceeds to avoid the perennial pressure on the Cedi.
Mr. John Kwakye who is the Director of Research at the Institute of Economic Affairs (IEA) in statement said as measure to curb cedi depreciation, the fiscal managers should factor in foreign proceed repatriation.
“……I have also suggested that maybe, this is the time that the Bank of Ghana should also reach out to all these companies that are making huge profits and repatriating them.
“The BoG should arrange with them so that they stagger the repatriation, they can deposit their excess money with you, you then pay interest on it and then you stagger the repatriation so that it doesn’t put so much pressure on the Cedi,” he added.
Mr. John Kwakye also share the view that, government should impose additional taxes on companies making windfall even in the midst of covid-19 as it has been done in other country to help
Speaking in an interview with 3Business, Mr Kwakye, said, “Some of us have proposed that this is the time that those sectors that are making windfall profits in the context of Covid, this is the time that the government should impose some kinds of extra tax on them, other countries have done it.
“The oil companies, gas companies, the telcos, even banks because we all hear the amount of profit that they are making.
“On the fiscal side, I will even expect that the government will ask them to pay some more taxes. The Bank of Ghana also on its part, if it is reaching out them so that they purchase foreign exchange proceeds, that is fine.” He added