Ghana to jail citizens 18 months for illegal foreign currency transaction

In a bid to salvage the woes of the cedi, the Bank of Ghana has warned citizens, and companies to stop transacting business, pricing goods and services and advertising in foreign currencies illegally.

According to the central bank, it is illegal for individuals, companies, institutions, etc to engage in foreign-exchange business without an appropriate licence from the regulator/BoG.

The BoG in a statement issued on Thursday, April 7, said such practices and activities breach the Foreign Exchange Act, 2006 (Act 723) which “prohibits companies and institutions from pricing, advertising, receipting, or making payments in foreign currencies in 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.

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The bank also warned the public to stop transacting business from the “black market”.

The central bank further reiterated in the statement signed by its Secretary, Sandra Thompson, that the only legal tender for transactions in the country is the Ghana Cedi.

“The 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 of Ghana further said in collaboration with the National Security and law enforcement agencies, it will continue to clamp down on illegal foreign exchange operations.

Ghana’s local currency, the cedi, in recent times has depreciated against major trading currencies, while the country’s inflation also keeps rising.

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