Ghana’s Securities and Exchange Commission (SEC) has introduced new restrictions on offshore investments by local fund managers.
This forms part of efforts to stabilise the local currency and put the economy on a sound footing.
According to a report by Reuters, the regulator announced in a circular on Friday that, effective immediately, fund managers will be allowed to invest no more than 20% of their assets under management in foreign securities.
Previously, some funds had the flexibility to place all their investments abroad, but under the new rules, even those will be capped at 70%.
SEC explained that foreign investments will only be permitted in jurisdictions that share regulatory information with Ghana, ensuring greater transparency and oversight.
This move comes as Ghana, a leading producer of gold and cocoa, works to rebuild confidence in its economy after enduring its worst financial crisis in decades.
The country is currently under a three-year IMF support programme, which is expected to conclude in August.
SA
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