A financial analyst, Sydney Casely-Hayford has stated that the Bank of Ghana\u2019s (BoG) review of the Forex rules it introduced earlier this year is an admission that they [BoG] made a mistake.<\/p>\n
\u201cIn so many words, they are saying they made some mistakes,\u201d he said.<\/p>\n
The central bank has responded to public outcry and the recommendations made in the Senchi Consensus by relaxing some of the Forex rules it implemented in February 2014.<\/p>\n
The measures were aimed at halting the further decline of the cedi<\/span> and curbing the increasing dollarization<\/span> of the Ghanaian economy.<\/p>\n Banks were banned from issuing cheques<\/span> and cheque<\/span> books on Foreign Exchange Accounts (FEA) and Foreign Currency Accounts (FCA).<\/p>\n They were also prevented from granting a foreign currency-denominated loans or foreign currency-linked facility to a customer who is not a foreign exchange earner.<\/p>\n Offshore foreign deals by resident companies, including exporters in the country were banned as well while over-the-counter cash withdrawals from foreign exchange and foreign currency accounts not exceeding US$10,<\/span>000 was only to be allowed for travel purposes outside Ghana or its equivalent in convertible currency per person per travel.<\/p>\n The quotation and transaction of goods and services in foreign currency was also prohibited.<\/p>\n Nonetheless, on Friday, the central bank announced a review to these rules, but the importers and exporters association is insisting the revised rules will still affect their businesses negatively.<\/p>\n On Citi FM\u2019s<\/strong> the Big Issue,<\/strong><\/em> Casely-Hayford remarked that the central bank had about four<\/span> months to access the impact of their measures and \u201cthey say that the cedi<\/span> depreciation has slowed down by 2.7%. However, if it continues deteriorating<\/span> at 2.4% for the rest of the year of that will be another eight months of 2.7% of depreciation so they clearly have seen that it can\u2019t work.\u201d<\/p>\n According to him, the BoG has made some significant amends by relaxing some of their rules.<\/p>\n Some of the revised rules by the BoG are that importers can now use their credit cards both<\/span> locally and abroad to make payments.<\/p>\n Withdrawals up to US$10,<\/span>000 without proof of travel are now being allowed.<\/p>\n There has been a reversal of the 60-day mandatory reparation of export proceeds.<\/p>\n The 5-day mandatory conversion of export receipts in Ghana cedis<\/span> has also been reversed.<\/p>\n The financial analyst mentioned that from henceforth, \u201cwe will see how trade will improve, and we will see how the cedi<\/span> will be restored.\u201d<\/p>\n He advised the managers of the economy to ensure that pertinent decisions they take \u201cwill last a long time and you are going to be in the position to live up to the expectations that you have promised.<\/p>\n Casely-Hayford said he is convinced the reviewed measures \u201cwill get us somewhere a little better.\u201d<\/p>\n <\/p>\n By: Efua Idan Osam\/citifmonline.com\/Ghana
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