Business News of 2014-08-02

BoG to review forex rules next week – Governor

The Bank of Ghana is expected to review further, the controversial forex rules next week August 4 – 9, 48 days after the last reviewed date. This will be the third review since the bank introduced the measures five months ago.

The cedi has depreciated nonetheless more than 27% against the dollar and other major foreign currencies for the first half of the year, despite the introduction of the measure to help halt its free fall.

Ghanaians and some analysts including Kwamena Essilfie Adjaye Nana Otuo Acheampong, have been pressurizingthe Bank of Ghana to scrap the forex rules because they have failed to stop the depreciation.

According to Kwamena Essilfie Adjaye , “any measures, any policies, any actions that do not address the supply constraint, the supply inadequacy (foreign currencies) will not give us the effect of arresting the cedi’s decline against other currencies.”

However, per the revision on June 13, customers can make large transactions over the counter provided they prompt their banks a couple of days before the withdrawal, and they can only withdraw up to 1,000 Ghana cedis over the counter without prompting their banks.

According to the governor of the Bank of Ghana Dr. Henry Kofi Wampah, the review was as result of monitoring of the impact of the measures by the bank. He also warned speculating against the cedi because; the bank was taking measures to halt the depreciation.

We are taking measures that will stabilize the cedi within this period (second half of 2014),” he added.

This comes a few days after a former deputy governor of the Bank of Ghana, Dr. Mahamadu Bawumia, predicted a further depreciation of the cedi against major trading currencies.

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