The Bank of Ghana (BoG) has made further revision to some of the Forex rules it introduced on February 4, to save the cedi from further depreciation against major foreign currencies.
A statement from the central bank said the limit of $1,000 on over- the- counter- foreign- exchange-cash withdrawals has been removed.
This measure was introduced on June 13 after the revision of an early rule which prevented customers from making over-the-counter withdrawals of more than $10,000 dollars without proof of travel.
However, per the new revision, customers could make larger transactions over-the-counter, provided they prompt their banks ahead of the withdrawal.
Also Foreign Exchange Accounts (FEA) and Foreign Currency Accounts (FCA) will continue to be opened and operated as they were before the introduction of the rules in February.
Except for transfers from FEA to FCA which are still prohibited, all other transfers between accounts are permitted.
According to BoG, FCAs shall be fed only with unrequited transfers such as transfers from abroad for investment or embassy transfers.
It further states that FEAs shall be fed with foreign exchange generated from activities in Ghana such as proceeds from exports of goods and services.
This will be the third time the rules have been reviewed after further clarifications of the rules on February 13 and revision on June 16.
The cedi has depreciated in excess of 27% nonetheless against major foreign currencies despite the rules.
Prior to the introduction of the new rules, the cedi had depreciated by about 8.1 percent to the US dollar, about 6.8percent to the British Pound and 6.4percent to the Euro.
The central bank as part of the revision also says Exporters shall continue to repatriate in full export proceeds in accordance with the terms agreed between the trading parties. Such proceeds shall be credited to their FEAs and converted on need basis.
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.
The press statement also states that Importers who use non – cash instruments (plastic cards) may continue to load up to $50,000 to meet their legitimate needs abroad subject to the necessary documentation requirements.
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.
Credit: citifmonline