Foreign companies urged to retain profit to sustain current cedi performance

The Member of Parliament for Dormaa East, Paul Apraku Twum Barimah, has appealed to multinational companies in the country to retain their profit in the country to help sustain the recent performance of the cedi.

Speaking in an interview with the media after the joint press conference between the Ministry of Finance and the visiting team from the International Monetary Fund(IMF), Mr. Twum Barimah said most of the multinational firms operating in the country are fond of remitting all their profits, a move that  deprives  the state of adequate funds to run the economy.

“As we try to convince government to enact a legislation that will make multinational firms retain portions of their profits in the country over a given period, we appeal to these firms to consider retaining some of their profits in the country voluntarily to help sustain the currency and the economy”.

Information indicates that most multinational or foreign firms repatriate 80% of their earnings, a move that negatively impacts Ghana’s socio-economic development.  For instance foreign mining companies retain an average of 80% of their annual earnings in line with binding agreements passed by Parliament in 2003.

The International Monetary Fund (IMF) and government on Tuesday, December 13, 2022 reached a staff-level agreement on economic policies and reforms proposed by the latter to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) totaling $3 billion.

Government’s strong reform programme is aimed at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery.

To support the objective of restoring public debt sustainability, government launched a comprehensive debt operation.

Hours after the announcement, Ghana’s currency – the cedi – began to appreciate against the United states dollar and all the major international currencies.