Banking consultant Dr. Richmond Atuahene has cautioned against proposals suggesting that the Bank of Ghana allocate a portion of its Cash Reserve Ratio (CRR) to support local cocoa purchasing companies.

His warning comes in response to a suggestion made by COCOBOD CEO Dr. Randy Abbey, who proposed that 2–3% of these reserves be redirected to sustain indigenous players in Ghana’s cocoa sector.

Speaking to Citi News, Dr. Atuahene emphasized that the CRR is a key monetary policy tool designed solely for managing liquidity within the banking system—not for financing private commercial activities.

“These are cedis that have been mobilized and locked at the Central Bank,” he explained. “They are meant to ensure there is always adequate liquidity for banks to operate. Diverting these funds to finance cocoa purchases would reduce the liquidity available to banks at the Central Bank.”

He further noted that the reserves held under the CRR are non-interest-bearing, making them “unremunerated reserves.”

“Let’s be clear,” Dr. Atuahene said. “When the Bank of Ghana mandates banks to hold a percentage of their deposits as reserves, no interest is paid on those funds. Are we now suggesting that banks—already earning nothing on these reserves—should allow them to be used for cocoa buying? I strongly disagree.”

Dr. Atuahene warned that using statutory reserves for commercial purposes could jeopardize the central bank’s monetary policy credibility and pose risks to financial sector stability.

He urged policymakers to explore alternative financing strategies for the cocoa industry that do not compromise the core functions of the central bank or the liquidity of the financial system.