BoG’s Measures For Review

Dr. Kofi Wampah, BoG Boss

Dr. Kofi Wampah, BoG Boss

Dr. Kofi Wampah, BoG Boss
President John Dramani Mahama has given assurance that the new measures introduced by the Bank of Ghana (BoG) to curb the free fall of the cedi will be reviewed.

He said the review will address the unintended implementation flaws and also allay the fear of members of the general public and the investor community in general.

President Mahama, who was addressing participants at the National Economic Forum to address the nation’s current economic crisis, was of the view that the actions taken by BoG was in the best interest of the country.

The Bank of Ghana (BoG) in February announced measures to shore up the cedi against the major foreign currencies.

As part of the measures, it banned commercial banks and other financial houses from issuing cheques and cheque books on Foreign Exchange Accounts (FEA) and foreign currency accounts (FCA).

It said 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.

It noted that all transactions in the country should be conducted in Ghana Cedis in compliance with the Bank of Ghana Notice dated October 10, 2012.

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.

Many businesses and institutions, including the Trades Union Congress (TUC), have kicked against the directives, claiming they would worsen the current economic conditions.

However, President Mahama said, ‘Government was aware of the concerns raised by various quarters of the population about the effects of these measures by the Central Bank.’

By Cephas Larbi

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