The Bank of Ghana (BoG) has announced additional measures to shore up the cedi against the major foreign currencies.
As part of the measures, it has banned commercial banks and other financial houses from issuing cheques and cheque books on Foreign Exchange Accounts (FEA) and foreign currency accounts (FCA).
It has also directed that no bank should grant a foreign currency-denominated loan or foreign currency-linked facility to a customer who is not a foreign exchange earner.
The central bank has also prohibited offshore foreign deals by resident companies, including exporters in the country.
Again, over-the-counter cash withdrawals from foreign exchange and foreign currency accounts not exceeding US$10,000 shall only be permitted for travel purposes outside Ghana or its equivalent in convertible currency per person per travel.
The directives, which were contained in a release signed by the Secretary to the bank, Mrs Caroline Otoo, also said “all undrawn foreign currency-denominated facilities shall be converted into local currency-denominated facilities with the coming into effect of this notice”.
“However, existing fully drawn foreign currency-denominated facilities and loans to non-foreign exchange earners shall run until expiry,” the release added.
Since the beginning of the year, the cedi has declined by more than four per cent.
Currencies elsewhere have been chaotic since the beginning of the year. The Argentine peso, the Turkish lira and the South African rand have been tumbling since January, 2014, but the drop in the value of the cedi is causing some investor scare.
Among other measures by the BoG to halt the fall of the cedi are the prohibition of transfers from one currency-denominated account to another and the requirement that transfers outside Ghana from foreign exchange and foreign accounts be supported by relevant documentation.
According to the BoG, foreign exchange purchased for the settlement of import bills would be credited to a margin account that would be operated and managed by the bank on behalf of the importer for a period not exceeding 30 days. New measures for forex bureau operators
The central bank has also outlined new measures for forex bureaux operators which direct them not to sell or buy more than US$10,000 or its equivalent per transaction.
The new regulations also require forex bureau operators to computerise their operations by adopting the certified softwares approved by the BoG by April 30, 2014.
The directives also asked forex bureau operators to cease issuing manual receipts after April 30, 2014 and only issue electronic receipts for all transactions (purchases and sales) in the format prescribed by the BoG.
The operators are also expected to keep electronic records of all purchases and sales that will include the name of the customer, the date of transaction, the amount purchased or sold and proof of identity, such as a passport, a voter’s or national ID or a driving licence.
They are also to submit monthly returns electronically to the BoG within five working days after the end of the month, with no manual returns being accepted after April 30, 2014.
The central bank has warned that failure to comply with the directives shall attract penalties, including pecuniary sanctions, suspension and revocation of licence, in accordance with the Foreign Exchange Act 2006, ( Act 723).
That, the bank said, was part of measures to modernise, enhance and address anti-money laundering issues. Repatriation of export proceeds
The bank also directed exporters to collect and repatriate all the proceeds of their exports to their local banks within 60 days of shipment.
According to the central bank, five days upon receipt of the export proceeds, commercial or local banks were required to convert the proceeds into Ghana cedis based on the average interbank foreign exchange rate prevailing on the day of the conversion, with a spread not exceeding 200 pips.
The BoG advised exporters with retention accounts to continue operating them in accordance with their retention agreements.
But the retention proceeds which are sold to the banks shall be converted into Ghana cedis based on the average interbank foreign exchange rate prevailing on the day of the conversion within a spread not exceeding 200 pips.
The bank also warned that failure to comply with the directives would result in sanctions, jail terms, suspension and revocation of operating licences.
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