An economist with the Institute of Statistical Social and Economics Research, ISSER, Professor Peter Quartey has advanced some simple but smart methods government can implement to prevent the annual Ghana cedi and the US dollar forex battle.
Speaking at the 4th Economic and Business Breakfast Forum organized by First National Bank Ghana on Tuesday March 26, 2019, Prof Quartey stated that because there is too much cash in the system, mostly with Ghanaians who travel to China and the middle East for trade purposes, their activities affect the Ghanaian Cedi.
In addition, Prof Peter Quartey stated that purchasing of foreign currency in Ghana is not tracked by any database, a practice which has made it easier to move foreign currency out of the country illegally. Regulations in African countries like South Africa, Senegal, Kenya among others, provides for submission of an ID which is duly checked prior to purchasing any foreign currency.
Meanwhile, as a measure to sensitize the financial sector, the Bank of Ghana in 2018 introduced some new directives to regulate the activities of Forex Bureaux in Ghana.
A statement from the Bank of Ghana to Forex Bureaux and the general public sighted by ghanatalksbusiness.com, provides that “as part of measures to enforce compliance by all licensed Forex Bureaux with the Forex Bureau Regulations issued in accordance with the Foreign Exchange Act, 2006 (Act 723), and the provisions of the Anti-Money Laundering Act, 2008 (Act 749) as amended, the Bank of Ghana announces for the information of all licensed Forex Bureaux and the General Public to the following; All purchases and sales of forex must be captured electronically and receipted accordingly by licensed Forex Bureaux and also all customers must provide valid national identification or other valid personal ID such as Voter’s ID, Passport or Driver’s License when engaging in forex transactions with Forex Bureau”.
However, suggesting a solution to perennial depreciating of the Cedi against the USD, Professor Peter Quartey advocated that, considering the number of Ghanaians traders who trade in China and the Middle East, it will be beneficial for the country if Government pushes for the establishment of a Chinese Bank to help facilitate payments amongst Ghana-China traders.