Last week, the Deputy Finance Minister, Charles Adu Boahen inaugurated a 38-member committee christened the Foreign Exchange Developments Committee with the task of reviewing the existing forex regime and come up with workable solutions to foster a stable exchange regime.

The committee, which followed its inauguration with its first meeting, has been criticised by the public.

Some argue that the committee is a duplication of the Bank of Ghana’s mandate while others have said it is needless.

Here are six things to know about the committee:

1.  The establishment of the committee was directed by Cabinet

The establishment of the committee was directed by Cabinet and endorsed by Parliament.

Finance Minister, Ken Ofori-Atta, addressing Parliament on March 28, 2019, said: “The President has directed that I investigate the structural causes for the depreciation of the cedi and to propose measures to address the situation. The Governor and I will put a bipartisan committee together to proceed immediately.”

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He was in Parliament to make a statement on Ghana’s exit of a three-year IMF bail-out programme, the Eurobond success as well as the depreciation of the Ghana cedi.

2. The Committee is made up of 38 members 

The committee is made up of 38 persons drawn from 26 different institutions. The Finance Ministry dominates with seven members while there are three people from the Bank of Ghana.

3. It is chaired by the Minister of Finance

The Finance Minister, Ken Ofori-Atta chairs the committee whose membership includes the Trade and Industry Minister, Alan Kyerematen and Owusu Afriyie-Akoto, Agriculture Minister.

4. NDC MP, John Kpoko refuses to join committee

Even before the committee’s work takes off, a member, Benjamin Kpodo, MP for Ho Central, declined an invitation to be part of the committee. He argued that he did not consent to his name being added to the list.

5. FX committee will make recommendations 

The committee’s mandate is to review, assist and provide recommendations on how to improve management, transparency and the long-term structure of Ghana’s foreign exchange flows.

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5. Report will be submitted to Economic Policy Coordinating Committee

The committee’s final report will be presented to the government’s Economic Policy Coordinating Committee (EPCC) co-chaired by BoG Governor, Dr. Ernest Addison and Ken Ofori-Atta.

The EPCC is a high-level technical committee mandated to provide strategic policy direction for effective coordination and implementation of the Government’s economic programme and budget.

Source: citinewsroom.com


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