Banking consultant, Dr Richmond Atuahene has called on the government to ensure that the exchange rate is resilient to intermittent shocks related to the country’s terms of trade and overall net external position.

Speaking at the Ghana National Chamber of Commerce and Industry (GNCCI) Dialogue Series, Dr Atuahene emphasised the need for economic diversification and increased investments in sectors beyond cocoa.

He noted that loose fiscal and monetary policies in Ghana often lead to substantial exchange rate depreciations.

In the short to medium term, Dr Atuahene recommended selective import substitution and the introduction of restrictions to mitigate the local currency's depreciation.

He stressed that maintaining exchange rate stability requires tight demand management policies, including reducing fiscal deficits that have plagued the economy over the past decade.

He urged the government and the Bank of Ghana to better track and capture foreign remittances, including those handled by new money transfer and fintech companies licensed under the Payment Systems and Services Act 2019 (Act 987), to comply with the Foreign Exchange Act 2006 (Act 723).

Dr Atuahene suggested that the government, through the Attorney-General, negotiate with existing mining companies to increase the portion of revenue surrendered from 13.5% to 25-30%, following the Botswana Model with Anglo-American De Beers.

As a long-term solution, he advocated for diversifying the country’s agricultural exports, such as rice, maize, onions, tomatoes, soybeans, and cashews, and adding value to these exports. He also emphasized increasing local production and reducing imports to maintain sufficient foreign exchange reserves.

He highlighted the importance of modernising agriculture and creating an enabling business environment to accelerate agricultural industrialisation. This requires investment in economic infrastructure, reducing business costs and regulatory barriers, and developing new export growth poles.