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Bank of Ghana will not fund rice and poultry importation again

The Bank of Ghana (BoG) has quit giving Foreign Exchange (FX) to banks and other monetary organizations to fund the importation of rice, poultry, vegetables and earthenware production, among others.

The national bank pulled out the help this month as a component of endeavors to boost the nation's economy while empowering domestic production and the utilization of local substitutes.


The choice has been imparted to the moneylenders electronically.

BoG said the impacted things included rice, poultry, vegetable oils, toothpicks, pasta, organic product juice, filtered water, fired tiles and other non-basic merchandise.

A source at the central bank affirmed the improvement to Daily Graphic yestersday however said it didn't add up to requesting that shippers quit bringing in the recorded things.


It said it just implied that BoG wouldn't finance their importation.


President's address


BoG said in the electronic message that its choice followed an order by President Nana Addo Dankwa Akufo-Addo during his October 30 address to the country.


"As per the President's order gave at his new address to the country on the Ghanaian economy, on October 30, 2022, BoG will never again give FX backing to the imports of rice, poultry, vegetable oils, toothpicks, pasta, organic product juice, filtered water, fired tiles and other non-basic merchandise.


"Kindly be encouraged and act as needs be," the national bank said.


Restricting imports

In his last address to the country, President Akufo-Addo wailed over the import-reliance nature of the economy and vowed to restrict the act.


He said the public authority was attempting to audit the principles expected for imports of significant items to support domestic production.


Considering that the economy "is in extraordinary trouble," the President said there was the need to focus on imports,.


He said a survey of the administration of the country's FX holds was in progress to guarantee that items, for example, rice, filtered water and natural product juice were produced locally.


He said the point was to reestablish and support macroeconomic dependability inside the following three to six years, with an emphasis on guaranteeing obligation maintainability to advance sturdy and comprehensive development while safeguarding poor people.


Worth of imports

The nation as of now spends about US$600 million to import poultry consistently.


At the meeting over claims of dumping of chicken in the country by the Ghana International Trade Commission, the Public Director of the Poultry Ranchers Affiliation, Victor Oppong, said around 600,000 tons of frozen chicken were brought into the country consistently and sold at less expensive costs, bringing about the close to fall of the homegrown poultry market.


"On an annual basis, we receive 600,000 tonnes of frozen chicken, which is made up of 569 million birds valued at $600 million. We are saying that the import is collapsing the poultry industry as well as putting more pressure on the local currency," Mr Oppong said.


Rice

In 2018, the minister of Food and agriculture, Dr Owusu Afriyie-Akoto, likewise lamented the rising resort to imports to meet the rice needs of the general population.


He said the improvement was costing the country a normal of US$1 billion yearly.


As per the minister, the worth of rice imports rose from US$151 million in 2007 to US$1.16 billion in 2015.

Imports of vegetable oils, toothpicks, pasta, organic product juice, filtered water, clay tiles and other non-basic merchandise additionally cost the country comparative sums, prompting the ceaseless decrease in the reserves of the BoG, which prompts the lasting depreciation of the local currency.

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