The bank of Ghana is poised to take pragmatic measures to reduce the dollarisation of Ghana’s economy by enforcing the law that prohibit traders and business people and organization for pricing their products in United States Dollars and other foreign currencies.
The weakening and negative fluctuation of Ghana cedis are as a result of the dollarisation of Ghana’s economy. This actually affects cost of living and inflationary rate adversely.
A department of Bank of Ghana in charge of supervision of financial institutions is geared on mopping out strategies to prevent traders and other business organizations to price their goods and services strictly in Ghana. Additionally, the team is going to embark on a national campaign on the need for businesses and business people to price their goods and services
in Ghana cedis only and that failure to comply will attract legal sanction. Subsequently, the team has been monitoring institutions such as hotels, motor dealers, real estate firms, among others, warning them to price their goods and services in dollars or face legal sanctions. The law state that anyone found culpable will face prison terms of not more than 18 months or 700 of penalty points or both.
According to Head of Forex Bureau, Adjoa Takyiwaah, Bank of Ghana will first warn business organisations and business people and if they do not comply then sanctions will be meted out to them.
“We are going to caution them, we are going to educate them that as part of our enforcement exercise we need to get everyone involved to understand that there is a directive that is asking them not to price in any other currency apart from the cedi. In the event that they do, the penalty will take place; for now, it’s just caution and education for the general public know that there is something in that directive.”
According to the BoG, the Foreign Exchange Act 2006, Act 723, prohibits pricing, advertising or receipt for payment of goods and services in foreign currency in Ghana. The sole legal tender in Ghana is the cedi and the pesewa.