The financial sector regulator, Bank of Ghana (Bathroom), has prohibited the pricing, promotion and receipt or payment for goods and solutions that are contracted locally in any foreign forex.
In a launch issued and signed by Alethea Godson-Amamoo on behalf of the Secretary to the Bathroom, the central bank cautioned companies, institutions and people today towards dealing in the enterprise of international exchange devoid of authorization from the bank.
“The common community is hereby reminded that the International Exchange Act, 2006, (Act 723) prohibits the pricing, advertising and receipt or payment for merchandise and providers in foreign currency in Ghana.
The sole authorized tender in Ghana is the Ghana Cedi and the Ghana pesewa,” the release indicated.
According to the assertion, people discovered to have violated the directive would deal with summary conviction, a high-quality of up to 7 hundred penalty units or a prison time period of not a lot more than eighteen months, or both equally.
The shift from the Lavatory is envisioned to tackle the surging dollarization of the economic system where by rates for different goods and providers that are procured domestically are getting quoted in bucks and other international currencies at the expenditure of the Ghana cedi.
Bathroom Governor, Dr Ernest Yedu Addison, hinted in September last yr that his outfit was going to push this regulation in favour of the local forex.
“We will enforce the regulation simply because we are worried about that so we intend to strengthen the conversation on the guidelines relating to pricing for the sector,” he had stated at that MPC meeting.
Real estate developers, provider vendors in the hospitality sector, architectural and authorized consultancies, some private schools and auto sellers usually cost in international currencies.
According to economists, the pricing of goods and companies in overseas currencies — or dollarisation of the economic climate — is a essential contributor to the depreciation of the community cedi, inflation and macroeconomic instability.
To some money analysts, the problem has resulted in the plummeting price of the area currency from the US greenback and other key trading currencies.
In March this calendar year, the govt had to inject some $800 million into the financial state in an attempt to stabilize the cedi, which was investing around GH¢5.50 to the greenback.