The Ghana Employers Association is urging the Bank of Ghana to implement an effective identification system to identify buyers and sellers of foreign currencies to enable them monitor their flow.

This move it believes will help stabilise the exchange rate.

According to its Chief Executive Officer, Alex Frimpong, the Central Bank must find other means of fighting inflation rather than the inflation targeting framework, since raising the policy rate will increase cost of borrowing.

Speaking to Joy Business, Mr. Frimpong said local businesses can no longer operate effectively due to the high inflationary environment and lending rates.

“The association would like to urge the BoG to take into account the source of inflation in raising policy rates which eventually push up lending rates, with adverse consequences for businesses”

“We also entreat the Bank of Ghana to implement an effective identification system to identify buyers and sellers of forex on the forex market to enable the Central Bank monitor the flow of foreign currency to help in stabilising the exchange rate”, he said.

Speaking on the Enhanced Domestic Programme, the association entreated the government to consult widely on the implementation of the programme.

He, however, asked government to leverage the IMF intervention to build a robust economy.

“GES urges government to consult broadly more than ever before and involve employers and all stakeholders in the design and implementation of the Enhanced Domestic Programme. The IMF intervention should help in building strong institutions and a resilient macro economy that is capable of withstanding shocks”, he maintained

The Ghana Employers Association recommend that the benchmark value policy be reviewed to cover imported goods that are not produced locally.