5 things to know about the FX Development Committee

The Finance Ministry last week set up a 38-member body named Foreign Exchange Development Committee.

The committee is charged with the responsibility of reviewing the existing forex regime and recommend workable solutions for a stable exchange regime.

The formation of this committee was greeted with mixed reactions from a cross section of the Ghanaian populace.

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

GhanaWeb has chronicled five things you need to know about the committee.

1. Finance Minister is the committee head

The committee is chaired by Ken Ofori-Atta, Finance Minister, with other members coming from multiple institutions. The 38 membership also includes the Trade and Industry Minister, Alan Kyerematen, and Owusu Afriyie-Akoto, Agriculture Minister.

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

“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.” These were the words of finance minister, Ken Ofori-Atta as he addressed Parliament on March 28, 2019.

He was addressing parliament on Ghana’s exit of a three-year IMF bail-out programme, the Eurobond success as well as the depreciation of the Ghana cedi.

3. FX committee will make recommendations

The FX committee is charged with the responsibility of reviewing, assisting and providing recommendations on how to improve management, transparency and the long-term structure of Ghana’s foreign exchange flows.

4. NDC MP, John Kpoko refuse to join committee

The establishment of the committee, named the FX Developments Committee, is in fulfilment of a promise made by the finance ministry last year to constitute a bi-partisan body to look into the problem and help address it. However, Benjamin Kpodo, MP for Ho Central has declined an invitation to be part of the committee even before the committee’s work takes off.

5. Report will be presented to Economic Policy Coordinating Committee

The committee’s final report will be submitted 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.