BoG could get $4b every year under FX sale from mining firms
The Bank of Ghana could be getting about $4 billion every year under the proposed sale of Foreign Exchange from gold exports proceeds by mining firms in Ghana.
This is based on data picked up from the Ghana Chamber of Mines, which showed that mining firms in the country are required to repatriate about 80% of revenue from gold export to the country.
This is to help take care of their recurrent expenditure and other expenses.
Ghana Chamber of Mines on Foreign Exhange Deal with Bank of Ghana
Speaking on PM Express with host, George Wiafe on Thursday, the Chief Executive Suleman Koney noted that, they are currently studying the proposal from the Bank of Ghana on the framework that will guide the sale of the Foreign Exchange earnings from exports to the Central Bank.
He added that “we are totally committed to this program, and maybe for now our concerns will be how it will be done. Essentially there is no push back on this initiative, and more sales could be made when all the companies have gone through the approval under the current Foreign Exchange Retention.”
“The Mining Firms had a mandatory program where a fraction gold revenue was sold to the Bank of Ghana and the rest saved with the Commercial Banks. However under this initiative, the Bank of Ghana can now participate in the dollars sold to the commercial banks in addition to the 20 percent that is going to banks in the country.”
Mr. Koney disclosed that even before the Ghana Chamber of Mines is yet to reach a deal with the Bank of Ghana, one firm has sold $6 million to the Bank of Ghana and additional $14 million will come in the next few weeks.
“So already a lot of it comes back, on average we’re talking about 75%. Last year for example we did in excess of 80% of mineral revenue coming back to the country,” Mr Koney said.
He continued, “And you’d ask yourself ‘so what has changed?’ what has changed in the last few years is this recent drive to push hard on local value, local procurement and so on and so forth.
Bank of Ghana on the deal
The Bank of Ghana as part of measures to help stabilize the Ghana cedi and inflation rate announced series of measures to try and stabilize the situation.
One of them include working collaboratively with the mining firms, international oil companies, and their bankers to purchase all foreign exchange arising from the voluntary repatriation of export proceeds from mining, and oil and gas companies.
According to the Bank of Ghana this is to help strengthen the central bank’s foreign exchange auctions.
JOYBUSINESS is learning that already more than two mining firms have started selling some dollars to the Bank of Ghana , a move that will go a long way to deal with current pressures on the currency.
Source: Ghana News
