Importers and Exporters Association reacts to BoG’s withdrawal of FX support

The Importers and Exporters Association has hinted at possible food shortages over the Bank of Ghana (BoG)’s decision to withdraw foreign exchange support for the importation of some food commodities.

The development, according to the Association, will also cause a surge in food inflation in the coming days.

Executive Secretary of the Association, Samson Asaki Awingobit made the disclosure on Asempa FM’s Ekosii Sen.

Mr Awingobit said the directive was not the best at the moment as Ghana currently does not have the capacity to enforce it.

“I can tell you that within the shortest possible time, we will see an uprise in prices of these commodities; rice, poultry, vegetable oils, toothpicks, pasta, fruit juice, bottled water, and ceramic tiles especially if the Bank of Ghana goes ahead to implement this policy to the latter,” he said.

The Central Bank on November 17, 2022, directed banks to withdraw foreign exchange support to customers for the importation of certain non-critical or essential goods.

This was in accordance with President Akufo-Addo’s announcement to cut down importation in an address to the citizenry on the Economy on Sunday, 30th October 2022,

But Mr Awingobit has predicted going forward, businesses with stock of these products may decide to hoard them, resulting in shortages.

“By January, we will begin to see some shortages because the Commercial Bank will not have the forex to satisfy the market.

“So if Bank of Ghana will not come in to help them, what it means is that only a few people will be able to raise these monies to go and bring these things,” he added.