The Association of Ghana Industries (AGI) is calling on the Bank of Ghana (BOG) to ensure that commercial banks in the country fully implement the latest revised forex rules.
The Bank of Ghana in February introduced new and revised forex rules to save the cedi from further depreciation.
In June it amended the rules it introduced in February and further revised them last week Friday, August 8th 2014.
According to the Bank of Ghana after continuously monitoring the measures and having observed some implementation challenges and following further consultations, it decided to revise the rules.
Latest revised rules
Among the latest revised rules the limit of $1000.00 on over-the-counter foreign exchange cash withdrawal has been removed.
Also exporters can continue to repatriate in full export proceeds in accordance with the terms agreed between the trading parties.
Such proceeds can be credited to their FEAs and converted on need basis.
Per the latest revised rules FEAs and FCAs will continue to be opened and operated as they were before the Notices of February 4, 2014.
However except for transfers from FEA to FCA which are still prohibited, all other transfers between accounts are permitted.
Still on the latest revision the 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.
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.
The Bank of Ghana however warns that the Ghana cedi remains the sole legal tender in Ghana and pricing, advertising, invoicing, receiving, and making payments for goods and services should be done in Ghana cedis, unless otherwise authorized by the Bank of Ghana.
Meanwhile existing measures which were not amended in the latest revision will continue to remain in force.
Supervision of new rules
Speaking to Citi Business News on the latest revision President of AGI James Asare Adjei said the BOG must ensure commercial banks in the country are properly supervised to ensure they don’t do otherwise.
“This is a starting point of reassuring the captains and managers of industry that plans are being made to address the challenges that face the country regarding forex and other issues related to banking transactions, but we want to see the Bank of Ghana fully supervising the various banks so that the measures would be fully implemented by other banks.”
According to the AGI President, commercial banks in the country always interpret rules and directives of the Bank of Ghana to suit them when there is no supervision.
By: Norvan Acquah- Hayford/citifmonline.com/Ghana