Dr. Johnson Asiama – Governor of Bank of Ghana
The Bank of Ghana (BoG) has directed individuals and institutions to immediately stop pricing and conducting transactions in foreign currencies for goods and services within the country, insisting that the Ghana cedi remains the sole legal tender.
According to the central bank, unlicensed dealings in foreign exchange, popularly known as black market activities, as well as the quoting, advertising, invoicing, issuing of receipts, and making or receiving payments in United States dollars or other foreign currencies for local transactions, are strictly prohibited under the Foreign Exchange Act, 2006 (Act 723).
The directive, contained in a public notice issued yesterday and signed by Aimee V. Quashie on behalf of the Secretary, specifically applies to services such as the payment of school fees, sale and rental of vehicles and real estate, airline tickets, domestic contracts, retail shopping, online sales, and hotel accommodation.
The BoG emphasised that no resident of Ghana should price or accept payment in dollars for such services unless duly licensed or authorised.
According to the notice, foreign currency invoices may only be issued to expatriates and non-residents, with proceeds from such transactions required to be lodged in Foreign Exchange Accounts (FEAs) with licensed banks.
The BoG further noted that exchange rates applied on such invoices must reflect prevailing commercial bank rates and be benchmarked against the Bank of Ghana’s published reference rate, rather than arbitrarily set.
The BoG further assured the public that legitimate foreign exchange transfers for external payments will continue to be processed through the banking system, subject to existing regulations and procedures.
However, it cautioned that violators of the directive will face sanctions, including prosecution, in accordance with the law.
By Ernest Kofi Adu