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Ghana bans local transactions in foreign currencies, violators risk 18 months jail term

Published

1 year ago

April 8, 2022

In a move to strengthen its local currency – Cedis, and fortify the Ghanaian economy, the Ghanaian government has banned spending and transaction of businesses in foreign currencies in the country.

The Central Bank of Ghana, announced in a statement (Pdf) on Thursday, that citizens and companies are to stop transacting business, pricing goods and services and advertising in foreign currencies.

“The Public is hereby notified that the sole legal tender in Ghana is the Ghana Cedi.” Part of the statement reads.

The country’s apex bank warned that “violations are punishable on summary conviction, by a fine of up to seven hundred (700) penalty units or a term of imprisonment of not more than eighteen (18) months, or both.”

“Engaging in foreign exchange business without a licence issued by Bank of Ghana; or pricing, advertising, receipting or making payments for goods and services in foreign currency in Ghana, without written authorisation from Bank of Ghana,” the statement reads.

The bank also cautioned the public to stop transacting business from the black market.

“Bank of Ghana hereby cautions the general public to desist from dealing in illegal forex activities (black market transactions), pricing, advertising, receipting, or making payments for goods and services in foreign currency in Ghana, without the requisite license or authorization from Bank of Ghana,” it added.

The Bank of Ghana also said it has collaborated with the national security and law enforcement agencies to clamp down on illegal foreign exchange operations.

Ghana economies have been battling with fiscal slippages, whilst their rising debts have created fears among investors regarding their economic outlook.

Against its position as the best performing currency in the world in 2020, a report on Bloomberg in February 2021 says the Ghana cedi is now the worst-performing currency among Africa’s top currencies.

Related Topics:Currency Featured Foreign exchange Ghana Cedis

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Kenya: Parliament approves appointment of Kamau Thugge as central bank governor

Published

6 hours ago

June 7, 2023

Ifeoluwa Dada

Months after throwing open the position for the country’s top banker, Kenya’s parliament has approved the appointment of Kamau Thugge as the country’s central bank governor.

The National Assembly on Wednesday approved the
appointment of economist and senior civil servant who was nominated by President William Ruto as the next apex bank chief.

Thugge, who served as principal secretary in the finance ministry until mid-2018, was nominated after serving as one of the president’s senior economic advisers since late last year.

He shook off competition from others shortlisted candidates like Adan Mohamed, who served in the cabinet from 2013-2022, with four others also interviewed for the role.

The new central bank governor will be faced with the immediate pressure of stabilizing the country’s monetary policy as the East African giant currently faces a shortage of funds amidst rising public debt.

Despite the odds, the World Bank in a report earlier today expects growth to edge up to 5.0% in 2023, underpinned by a recovery in agriculture.

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Ghana presents ‘working proposal’ for debt restructuring— IMF sources

Published

6 hours ago

June 7, 2023

Ifeoluwa Dada

West African country, Ghana has made a major move at resolving its debt crisis as the country has presented debt restructuring proposal to its creditors.

According to sources quoted by Reuters, a “working proposal” has been submitted to help the country escape its worst economic crisis in a generation.

One of the sources revealed that the proposal was a first attempt to engage the official creditor committee after its formation in May. It should be recalled that the Paris Club last month announced that official sector of creditors of Ghana had formed a committee co-chaired by China and France for debt restructuring talks.

The plan is to end restructuring of domestic debt before turning to negotiations with its official bilateral creditors and international bondholders, a government official said.

Ghana is one of several cash-strapped countries facing unprecedented delays in getting bailouts as China, its biggest bilateral creditor with about $1.7 billion of debt and Western economies disagree over how debt relief should be structured.

The first formal review of the programme will hold in the coming months as an IMF team will visit Ghana between 8th and 15th of June.