VenturesNow

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

Published

3 years 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

Click to comment

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

1 hour ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”

VenturesNow

Tanzania tells IMF economy projected to grow by 6% in 2025

Published

3 hours ago

December 20, 2024

Ifeoluwa Dada

Tanzania’s economy is expected to grow by about 6% in 2025 from an estimated 5.4% growth in 2024, its finance minister and central bank governor said in a letter to the International Monetary Fund (IMF).

Some of the potential risks to the performance in the near term would include intensification of regional conflicts, increased commodity price volatility, a global economic slowdown and natural disasters related to climate change, Finance Minister, Mwigulu Nchemba, and Central Bank Governor, Emmanuel Tutuba, said.

Real GDP increased by 5.3% in 2023 from 4.7% in 2022, propelled by private investments on the demand side and manufacturing, construction, and agriculture on the supply side.

Strict monetary policy and moderate food and energy prices contributed to the decline in inflation from 4.3% in 2022 to 3.8% in 2023. In 2023, the Tanzanian shilling lost 8% of its value due to a lack of foreign exchange.