Institutions in Ghana to be sanctioned for pricing their goods and services in foreign currencies, Bank of Ghana discloses

The Bank of Ghana says it will sanction some institutions for pricing their goods and services in foreign currencies.
This the central bank said is because these institutions have refused to heed to its warnings.
BoG said the deposits of foreign currency partly contributed to the constant depreciation of the cedi in the quarter of the year.

This follows news that some institutions have after several warnings from the BoG, are still pricing their goods and services in foreign currencies.

The Head of Forex Bureau Examinations and Other Financial Institutions at the central bank, Adwoa Konadu Torttoo, said this while talking to the media on Tuesday, September 17, 2019.

She noted that “For the general public and other stakeholders who price their things in foreign currencies, we are saying that moving on, after this caution, we are going to sanction them.”

She added that “Our directives come with punishment or sanctions and so if you flout this law you should be sanctioned.”

Background

The BoG in a notice cautioned companies, institutions and individuals against dealing in the business of foreign exchange without authorization from the bank.

The regulator in a statement earlier said, “The general public is hereby reminded that the Foreign Exchange Act, 2006, (Act 723) prohibits the pricing, advertising and receipt or payment for goods and services in foreign currency in Ghana.

“The sole legal tender in the country is the Ghana Cedi and the Ghana pesewa.”

According to the statement, persons found to have violated the directive would face summary conviction, a fine of up to seven hundred penalty units or a prison term of not more than eighteen months, or both.

The BOG further noted that the increase in deposits of foreign currency partly contributed to the constant depreciation of the cedi in the quarter of the year.