Don’t price goods and services in dollars – BoG

The Bank of Ghana (Bank of Ghana) has warned against the pricing, advertising and receipt or payment for goods and services in foreign currencies.

This is the third time this year the BoG has issued the notice prohibiting the act after similar calls in April and May.

Some institutions and individuals trade in foreign currencies which are without authorisation according to the BoG.

Some individuals price rent in foreign currency and commodities like cars and real estate have also been priced in foreign currency in recent times.

State institutions have also been known to engage in transactions with foreign currency despite the BoG’s cautions.

The Auditor-General, for example, highlighted a transaction between the National Media Commission (NMC) to the National Communications Authority (NCA) which was in dollars.

A statement published in the dailies reminded the public that the foreign Exchange act 2006 (Act 723) prohibits the pricing or payment of goods and services in foreign currency in Ghana.

It further added that such violations are punishable by summary conviction, a fine of up to 700 penalty units or a prison term of not more than 18 months.

An earlier banking sector report from the BoG revealed that increased deposits of foreign currency partly contributed to the dire depreciation of the cedi in the first four months of 2019.

According to the report, spanning activities between January to April 2019, the foreign currency that was deposited at banks increased by 28.2 percent in April 2019 compared to the same period in 2018.

The central bank’s report indicated that the equivalent of the figure in cedi terms increased from GHc15.1 billion to GHc19.3 billion within the one year period.

The central bank also previously reminded of the severe consequences that await persons who flout its rules concerning the importation and exportation of foreign currencies.

The BoG has powers under the Foreign Exchange Act, 2006 (ACT 723) to make rules governing the importation of foreign exchange and given the provisions of the Anti-Money Laundering Act, 2008 (Act 749) as amended.