The Bank of Ghana could be getting about $4 billion every year under the proposed sale of foreign exchange from gold export proceeds by mining firms in Ghana.
This is based on some analysis of the revenue of the mining companies for 2021.
It showed that the firms returned more than 80% of their proceeds.
So if this performance is repeated this year or the next five years, the Bank of Ghana could get this foreign currency.
This is to help take care of their recurrent expenditure and other expenses.
Ghana Chamber of Mines on foreign exchange transaction with BoG
Speaking on PM Express with host, George Wiafe on Thursday, the Chief Executive, Suleman Koney, said, the Chamber is currently studying the proposal from the Bank of Ghana that will guide the sale of the foreign exchange earnings to the Central Bank.
He added that “we are totally committed to this programme, and maybe, for now, our concerns will be how it will be done. Essentially, there is no pushback 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 programme where a fraction of gold revenue was sold to the Bank of Ghana and the rest deposited with the commercial banks. However, under this initiative, the Bank of Ghana can now participate in the dollar auction to the commercial banks, in addition to the 20% 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 an 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.
BoG on foreign exchange deal
The Bank of Ghana as part of measures to help stabilise the cedi and the inflation rate announced a series of measures to try and stabilize the situation.
One of them includes 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 Central Bank, this is to help strengthen its foreign exchange auctions.
Joy Business 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 address the current pressures on the currency.