BoG Warns Against Pricing In Foreign Currencies?

Dr.Ernest Addison

The Bank of Ghana (BoG) has warned companies, institutions and individuals against pricing, advertising and payment for goods and services in foreign currencies without its authorization.

The Central Bank, in a release issued recently signed by Alethea Godson-Amamoo on behalf of the Secretary to the BoG, said that those found culpable would face summary conviction, a fine of up to seven hundred penalty units or a prison term of not more than 18 months, or both.

It revealed that the sole legal tender in Ghana remains the Ghana Cedi and Ghana pesewa.

“The general public is hereby reminded that the Foreign Exchange Act, 2006 (Act 723) prohibits the pricing, advertising and receipt or payment for goods and services in foreign currencies in Ghana,” the release added.

Some businesses operating in the country including hotels, real estate players and airlines, among others, quote their rates and prices in foreign currencies, and this has been one of the factors contributing to the depreciation of Ghana’s local currency – the Cedi.

It would be recalled government had to inject about $800 million into the economy in March this year to stabilize the Cedi.

At a point, Minister of Finance, Ken Ofori-Atta, told Parliament that the President had directed him to investigate the actual cause of the depreciation of the cedi against major currencies like the dollar.
“Mr. Speaker, the president has directed that I investigate the structural causes for the depreciation of the cedi and to propose measures to address the situation. The government and I will put a bi-partisan committee together to proceed immediately,” Mr. Ofori-Attah told Parliament.

Ghanaians are yet to know the full details of the work of the fact-finding committee and measures it would recommend to help stop the rapid depreciation of the cedi against major foreign currencies.

By Samuel Boadi