The Bank of Ghana (BoG) has issued a stern warning against the use of foreign currencies in the pricing of products and services in Ghana.
According to a BOG statement, such activities violate the Foreign Exchange Act, 2006 (Act 723), which forbids firms and organizations in Ghana from pricing, advertising, receipting, or making payments in foreign currencies.
It is their contention that the law bans individuals or entities from participating in foreign exchange operations unless they have been granted a license by the Bank of Ghana.
“Such violations 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 of Ghana cautioned.
BoG further reiterated in the statement signed by its Secretary, Sandra Thompson, that the only legal tender for transactions is the country is the Ghana Cedi.
“The General public is hereby notified that the sole legal tender in Ghana is the Ghana Cedi. The Bank of Ghana, in collaboration with the National Security and Law Enforcement Agencies, will clamp down on illegal foreign exchange operations. All offenders shall be dealt with in accordance with the law”.
The bank also cautioned the public to desist from “black market” transactions
The cedi has been losing value against major trade currencies in recent months, and the country’s inflation rate is continuing to rise as well.
It was recently decided by the central bank to inject around $2 million into the economy in an effort to alleviate pressure on the cedi and save the currency from further decline.