Investment In Ghana Government Treasury Bills By Non-Resident Ghanaians

BANK OF GHANA

PRESS RELEASE

Investment In Ghana Government Treasury Bills By Non-Resident Ghanaians

The Bank of Ghana’s attention has been drawn to certain misconceptions to the effect that non-resident Ghanaians/Ghanaian investors cannot invest in Government of Ghana Treasury Bills.

The Bank wishes to correct this erroneous impression and hereby states that Ghanaian Investors resident offshore can continue to invest in Government Treasury Bills.

However, where a non-resident investor, having sent funds from offshore, requires that the proceeds of the investment (that is, interest and maturity value) be REPATRIATED offshore, then they are restricted to the purchase of Government Securities with tenor of three (3) years and above.

For emphasis, where a non-resident investor requires that his/her investment proceeds be repatriated, then the investment can only be in instruments with tenors of three years (3) and above, such as the 3-year or 5-year bond.

A lot of Ghanaians who are non-resident in Ghana send money home to be invested on their behalf in 91-day, 182-day Treasury Bills and the 1-year and 2-year Government Treasury Notes. These investors have accounts in Ghana which are used for such investments. On maturity, the proceeds are credited to these accounts, which is a form of savings for them back home in Ghana. This has not changed.

End August 19, 2010