President Akufo-Addo has proposed that Ghana withdraw at least 30% of its public funds and other assets held in foreign banks and financial institutions.
He said Ghana and other African countries prefer to park their national reserves in foreign financial institutions, a situation he believes is hampering much-needed development financing for Africa.
Speaking at the Presidential Dialogue on African Union Financial Institutions, held on the sidelines of the 37th African Union Summit in Addis Ababa, Ethiopia, he said all countries should withdraw 30% of their foreign exchange reserves and that African financial institutions should He rallied his colleagues to make a collective decision to leave the case to the United States. .
“We all agree that the way the global financial architecture currently works is not working in our favor and that fundamental systemic reform is needed,” he said.
President Akufo-Addo said, “Currently, almost all countries have reserves in foreign banks, most of which have negative interest rates.
“We should decide that at least 30% of our respective sovereign reserves should be invested in African multilateral institutions.
“I’m talking about ADB. I’m talking about Afreximbank (African Export-Import Bank). Afreximbank (African Export-Import Bank) has strengthened its balance sheet and facilitated more resources for our development. It also strengthens the ability to
The President premised his call on lessons learned from the COVID-19 pandemic, where many states have had and continue to have challenges accessing development funds to implement economic recovery programs.
He acknowledged that “this is a relatively radical proposal,” but insisted his call was made in tandem with the creation of an African Investment Bank.
At the 37th Ordinary General Assembly of the African Union held in Addis Ababa, Ethiopia adopted a decision to make Libya the host country for the African Investment Bank.
African leaders based their unanimous decision on Libya’s commitment and vision to strengthen the role of African finance, and urged member states that have not yet ratified the World Bank Charter to ratify it after considering outstanding efforts. He called for speeding up the process.
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