The Bank of Ghana (BoG) has warned people who price goods and services in foreign currencies to stop doing so or face consequences.
Such actions, according to the apex bank, violate the Foreign Exchange Act of 2006 (Act 723), which forbids enterprises and institutions in Ghana from pricing, advertising, receipting, or making payments in foreign currencies.
In a statement, the central bank also stated that the law bans individuals or institutions from conducting foreign exchange operations without first obtaining a license from the Bank of Ghana.
The Bank of Ghana warned that “such offences are punishable on summary conviction by a fine of up to seven hundred (700) penalty units or a term of imprisonment of not more than eighteen months (18) or both.”
The bank also warned the public against engaging in “dark market” trades.
The central bank also stated in a statement signed by Sandra Thompson, its Secretary, that the Ghana Cedi is the only legal money for transactions in the country.
“The public is hereby informed that the Ghana Cedi is the sole legal tender in Ghana.” Illegal foreign exchange operations will be prosecuted by the Bank of Ghana, in conjunction with the National Security and Law Enforcement Agencies. All violators will be prosecuted in accordance with the law.’
The top bank’s move comes in the wake of the Ghana Cedi’s recent struggles against major trade currencies, particularly the dollar, as well as the country’s economic troubles.
The cedi has recently fallen against major trading currencies, as inflation in the country continues to rise.
In an effort to alleviate the cedi’s troubles, the central bank has decided to inject around $2 million into the economy in order to relieve pressure on the currency.
