Business News of 2014-06-13

BoG reviews measures aimed at stabilising cedi

The Bank of Ghana has reviewed some of its measures it introduced in February this year to check the fall in the local currency.

At a press conference in Accra, Friday, the Bank said, for instance, those who are holding foreign accounts are now allowed to withdraw at least not more than $1000 at the counter.

Some of the measures included that "no cheques or cheque books shall be issued on the Foreign Exchange Account (FEA) and Foreign Currency Account (FCA).

"Cash withdrawals over the counter from FEA and FCA shall only be permitted for travel purposes outside Ghana and shall not exceed US$10,000.00 or its equivalent in convertible foreign currency, per person, per travel.

"Authorised dealers shall not sell foreign exchange for the credit of FEA or FCA of their customers. Transfers from one foreign currency denominated account to another are not permitted. "All transfers outside Ghana from FEA and FCA shall be supported by relevant documentation.

"Foreign exchange purchased for the settlement of import bills shall be credited to a margin account which shall be operated and managed by the bank on behalf of the importer for a period not exceeding 30 days".

The measures were greeted with an avalanche of criticisms from a section of the public, including business men and politicians. Officials of the Bank of Ghana have since reversed some of the far reaching measures to arrest a depreciating cedi.

Joy Business' George Wiafe who was at the press conference said those who were previously holding dollar or a pound account are allowed to withdraw over the counter but can't withdraw over a $1,000.

Exporters are now allowed to hold foreign currencies more than the stipulated 60 days. Per the old measures they were expected to convert the foreign currencies into the local currency within 60 days in their business transaction.

According to Wiafe, institution which transacts business with foreigners in Ghana can charge in foreign currencies but should give a change, if any, in the local currency. Loans can also be granted to institutions in foreign currencies.

Source: myjoyonline.com
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