Bank of Ghana Governor, Dr. Johnson Asiama, has disclosed that COCOBOD is set to receive more than $4 billion in inflows by the end of the year. This significant amount is part of a new financing arrangement implemented by COCOBOD to facilitate cocoa purchases for the upcoming crop season.
In an exclusive interview with Joy Business’ George Wiafe, Dr. Asiama emphasized that the influx of funds is expected to bolster the Bank of Ghana’s reserves and enhance its capacity to support the local currency in the near future. This development signals to the market that the central bank is well-equipped to intervene as necessary to meet the needs of businesses and commercial banks.
The Bank’s Economic and Financial Data report for July indicated that Ghana’s international reserves stand at $11.1 billion.
COCOBOD’s New Financing Deal
In 2023, COCOBOD introduced a new funding model for cocoa bean purchases, requiring global traders to deposit at least 60% of the value of their forward contracts at the beginning of the season. This initiative replaces a longstanding pre-export syndicated loan from international banks that has been in place for over thirty years.
A portion of the traders’ deposits will be utilized to finance purchases from farmers through an established partnership with licensed cocoa buying companies (LBCs). Under this framework, traders fund LBCs to procure cocoa while COCOBOD serves as an intermediary.
Cedi’s Outlook
Dr. Asiama reiterated that despite recent pressures, the outlook for the Ghana cedi remains favorable. He assured stakeholders that the regulatory authorities have taken proactive measures to maintain stability in the currency market. The macroeconomic fundamentals are robust, instilling confidence in the cedi’s outlook and ongoing efforts to enhance market liquidity.
The Governor emphasized that through adherence to discipline, transparency, and stringent regulation, the central bank aims to establish a market where the cedi can trade freely and predictably, bolstered by confidence. However, he cautioned that individuals exploiting loopholes, such as engaging in offshoring, fueling the black market, or submitting fraudulent import documents, will face sanctions.
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