Ghana’s Securities and Exchange Commission (SEC) has directed local fund managers to cut back on offshore investments as it seeks to protect the cedi currency and strengthen macroeconomic stability.
Ghana, a major gold and cocoa producer, is emerging from its most severe economic crisis in decades, and it is expected to complete a three-year IMF support programme in August.
The SEC said in a circular that, “with immediate effect, local fund managers will not be allowed to invest more than 20% of their funds under management in foreign securities”.
Funds that were previously allowed to invest all their money offshore will now be limited to 70%.
Any investment in foreign securities can only be made in countries that share information with Ghana’s SEC, the regulator said.
Reuters
