Clamp down unregistered and unregulated businesses affecting exchange rate – ISSER tells BoG
The Institute of Statistical Social and Economic Research (ISSER) is advising the Bank of Ghana to assess the informal forex market and close all unregulated business activities affecting Ghana’s exchange rate regime.
According to the institute, the Central Bank must deepen its efforts to reduce the dominance of the illegal forex operators on the market that drives exchange rate instability
In the institute’s 2024 Mid-Year Budget Review, titled “A Critical Assessment of the 2024 Mid-Year Budget”, it urged the Bank of Ghana to collaborate with the security agencies to go after unregistered businesses within the financial sector
“Assess the size of the informal forex market and institute efforts to reduce its dominance and activities that drive exchange rate instability. The Bank of Ghana, in collaboration with law enforcement agencies, should clamp down on unregistered and unregulated businesses”, ISSER stated in the review.
ISSER in the report further urged the central and fiscal authorities to ensure that the Development Bank of Ghana provides a cheaper source of funding to the agricultural sector to boost the local economy.
“Effective monetary and fiscal policy coordination is needed to support macroeconomic stability and growth. The Bank of Ghana and fiscal authorities should strengthen their partnerships and institutional coordination with global and regional financial and economic institutions, development partners, and the private sector to unlock resources to catalyse and sustain economic recovery.”
“The central bank and the fiscal authorities should ensure that the Development Bank of Ghana provides a cheaper source of funding to the agricultural and light manufacturing sectors to support higher value addition. This will significantly enhance local industry’s ability to produce import substitutes and improve export competitiveness,” ISSER mentioned in the review.
The ISSER report highlighted that policies and actions should be coordinated to stabilise prices, the exchange rate, and support banks in reducing the cost of credit to the private sector.