The Bank of Ghana has warned businesses and the public against the practice of demanding or making payments in foreign currency without its authorization. The central bank’s warning comes just over a month after Ghana’s currency was rated as the worst performer among Africa’s major currencies.
Violators Face Possible Imprisonment Time
The Ghanaian central bank has reminded the public that the practice of receiving or making payments for goods and services in foreign currency without its explicit authorization is still prohibited. The bank has similarly warned businesses against “engaging in unlicensed currency trading issued by the Bank of Ghana.”
In statement the Bank of Ghana (BOG) said those caught on the wrong side of regulations face heavy fines. Alternatively, those who violate the respective regulations face “imprisonment of not more than eighteen (18) months or both.”
Citizens Urged to Report Violations
According to the BOG, only the local currency, the cedi, is the only legal tender in Ghana. The central bank has also indicated that it will go down to companies that break the law and all criminals will be punished according to the law. In the statement, the BOG said:
Bank of Ghana, in cooperation with National Security and law enforcement agencies, will continue to slow down illegal foreign exchange operations. All criminals must be treated in accordance with the law.
Meanwhile, in the statement, the BOG said that Ghanaian citizens must report any violations of the Foreign Exchange Act to its complaints offices.
The BOG’s warning comes just over a month after the yield, which fell by 8.86% between January 1 and February 25, was called the worst performance among the major currencies of Africa. The fall in yields comes more than a year after it was rated the best yielding currency.
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