Businesses Must Be Transacted Only In Ghana Cedis—BoG

The Central Bank of Ghana [BoG] has reiterated its commitment in making the Ghana cedi , the only legal tender for conducting business within the country.

In A press release issued in Accra recently states that ‘’pricing, advertising, invoicing, receiving, and making payments for goods and services should therefore be done in Ghana cedis, unless otherwise authorized by the Bank of Ghana’’.

The Central Bank in keeping with its undertaking to review foreign exchange measures, has issued NOTICE NO. BG/GOV/SEC/2014/09, to amend the rules on foreign exchange operations.

The Notice issuance was also as a result of consultations with stakeholders and the general public as well as an analysis of the available data.

The statement added that the Bank will continue to monitor the measures and having observed some implementation challenges and following further consultations, has decided to revise the rules on foreign exchange operations.

The release disclosed that the limit of $1000.00 on over-the-counter foreign exchange cash withdrawal is removed.

Exporters shall continue to repatriate in full export proceeds in accordance with the terms agreed between the trading parties. Such proceeds shall be credited to their Foreign Exchange Accounts [FEAs] and converted on need basis, the release said.

Foreign Exchange Accounts [FEAs] and Foreign Currency Accounts [FCAs] will continue to be opened and operated as they were before the Notices of February 4, 2014.

Except for transfers from FEA to FCA which are still prohibited, all other transfers between accounts are permitted.

For the avoidance of doubt the release continued that FCAs shall be fed only with unrequired transfers such as transfers from abroad for investment or embassy transfers.

FEAs shall be fed with foreign exchange generated from activities in Ghana such as proceeds from exports of goods and services.

The release indicated that threshold for transfers abroad without initial documentation remains at $50,000.00. Where documentation in respect of a transfer remains outstanding, any subsequent import transaction by an importer, irrespective of value, shall only be made on prior provision of documentation required for the current import transaction.

Importers who use non – cash instruments (plastic cards) may continue to load up to $50,000 to meet their legitimate needs abroad subject to the necessary documentation requirements.

Foreign currency denominated loans may be granted by resident banks to their customers subject to their own internal procedures and processes and in compliance with the risk management guidelines of the Bank of Ghana.

Cheques and cheque books may be issued by banks to holders of FEAs and FCAs.

Existing measures which are not amended by this Notice shall continue to remain in force, the press release disclosed.

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