Dr. Kwakye advises MoF to stop multinational companies from en bloc repatriation of profits

The Bank of Ghana (BoG) and the Ministry of Finance (MoF) have been advised to ensure that multinational companies do not repatriate their profits in the face of cedi depreciation.

According to Dr. John Kwakye, Director of Research, Institute of Economic Affairs (IEA), the staggering repatriation of profits by the companies will help ease the pressure on the Cedi.

Speaking in an interview with Accra-based TV3, he explained, “some of us have proposed that this is the time that those sectors that are making windfall profits in the context of COVID-19, this is the time that the government should impose some kinds of extra tax on them, other countries have done it."

“The oil companies, gas companies, the telcos, even banks because we all hear the amount of profit that they are making.

“On the fiscal side, I will even expect that the government will ask them to pay some more taxes. The Bank of Ghana also on its part, if it is reaching out to them so that they purchase foreign exchange proceeds, that is fine,” Dr. Kwakye noted.

He continued: “I have also suggested that maybe, this is the time that the Bank of Ghana should also reach out to all these companies that are making huge profits and repatriating them.

“The BoG should arrange with them so that they stagger the repatriation, they can deposit their excess money with you, you then pay interest on it and then you stagger the repatriation so that it doesn’t put so much pressure on the Cedi.”

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