COCOBOD to bring in $4bn before year-end – BoG Governor
The Bank of Ghana expects more than $4 billion from COCOBOD before the end of the year
Governor Dr. Johnson Asiama said the inflows come from a new financing arrangement which COCOBOD is using to fund cocoa purchases for the new crop season.
He explained that the money will strengthen the central bank’s reserves and give it more room to support the cedi in the coming weeks.
“Our net international reserves have not run out, and all the indicators point to a favourable outlook,” Dr. Asiama told Joy Business.
COCOBOD has replaced its three-decade syndicated loan system with a new model that requires international cocoa traders to deposit at least 60% of their forward contracts upfront.
The deposits are used to fund licensed buying companies (LBCs) to purchase cocoa beans from farmers, with COCOBOD serving as the intermediary.
Ghana’s international reserves stood at $11.1 billion in July. Dr. Asiama said the $4bn inflows will help stabilize the currency despite recent pressures.
He added that the Bank of Ghana will continue to enforce discipline and warned that businesses exploiting loopholes through offshoring, black market activity or fake import forms will face sanctions.
By Joyce Kpeglo
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