• Live Radio
  • Videos
  • About
  • Contact
  • Despite Media
Ghana Election 2020
  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Opinion
  • VIDEOS
  • Media
    • Videos
    • Audio
    • Live Radio
    • Photos
  • Election 2020
Local News
 
 
 
Home Business Economy 201402

Cedi Stabilises After BoG Regulation

28-Feb-2014
/ Economy, Business
Email
Print
Comments 0
(0)
Comments
Share on Facebook Share on Twitter
 

The value of the local currency, is bracing itself into stability barely three weeks after the Bank of Ghana (BoG) announced measures to check its fast decline against major currencies.

Before the measures, one needed an average of GH¢2.40 to obtain a dollar, having started the year exchanging GH¢2.23 for the dollar on January 6. The local currency depreciated by 7.8 per cent for the month of January alone.

However, as of Monday, GH¢2.46 is exchanged for the dollar, representing about 2.43 depreciation over the stop gap period, signalling stability on the forex market.
Impact of regulation

The Head of Global Markets at Stanbic Bank Ghana, Mr Inusah Musah, told the Daily Graphic in Accra that “we can say that the regulation has, in a way, over the short period given people the assurance that something good can happen.”

He said, initially, there was anxiety among customers and the banking public, with many calling and visiting branches to seek explanations.

Following explanations given by banks and the central bank’s own subsequent clarifications, withdrawals abated and the value of the cedi had seen some stability as well.

“To our understanding, the regulations are expected to limit demand to real demand at a particular time, take the pressure off the cedi and improve liquidity. Before the regulation, if a bank were selling a million dollars, it had to have two million more to cater for people who needed them for future transactions; this imbedded future demands and pushed up prices,” Mr Musah and his colleague, Ms Sylvia Inkoom, Head of Corporate and Investment Banking explained.

This was at an engagement organised by Stanbic to sensitise its clients to the new measures and to help them adjust to the change in international trade and the use of foreign exchange accounts with local banks.

The February 20-21, 2014 event had different sessions for personal and business banking, as well as corporate and investment bankers.

“The first thing was clients trying to understand what the regulations would achieve. There was a high level of anxiety of what would happen or would not happen and the education campaign started, we realised a level of calmness and people did not rush for their moneys,” Mr Musah said.

Drivers of the stability

Before the directives, the exports were generally kept in forex accounts and converted when needed. The current regulation mandates all individuals and entities which earn foreign exchange, to transmit them to their local accounts and convert same within five days. This means that exporters cannot also trade their export proceeds with any non-Ghanaian bank.

Thus, conversions cannot be done with any bank offshore and they cannot keep their foreign exchange earnings abroad, if not allowed by law such as free zone companies and other investors with stability agreements.

Mr Musah attributed the stability to two factors. Firstly,there were restrictions on the dollar and by keeping it in foreign currency accounts, the demand was reduced to only people with immediate need for the currency.

Secondly, there was some level of flow from the regulatory side onto the market, and this, coupled with inward transfers and conversions within foreign currency accounts, helped to shore up supply.

Ms Inkoom and Mr Musah, therefore, called on customers of Stanbic Bank to approach the bank for any clarifications.

Source: Daily Graphic

 

 
 

 

Comments ( 0 ): Post Your Comments >>

Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.
Featured Video
Previous Post

Ghana Loses $1.2bn Tax Incentives To Foreign Companies

Next Post

Agricultural Sector Improving Despite Challenges

 
 

More Stories

Finance Ministry Positive Over Ghana’s Debt Restructuring In China
FWSC To Clear ‘Ghost Names’ On Public Payroll
Govt Bonds Fall By 21.09%
This Week Is Crucial For $3bn IMF Bailout
Consumer Inflation Eases Further To 52.8% In February
Fuel Prices To Drop Between 3% and 10% From March 16
Ofori-Atta Approves New Rates For Road Toll Reintroduction
Policy To Reduce Over US$10bn Imports Ready
Govt To Set T-Bill Rates At Lowly 15% In Cost-Cutting Move
Next Post

Agricultural Sector Improving Despite Challenges

  Ghana Business News

  • General News
  • Economy
  • Banking & Finance
  • Stock Market
  • Industry/Manufacturing


 
 

Other Economy Stories

  • Finance Ministry Positive Over Ghana’s Debt Restructuring In China

  • FWSC To Clear ‘Ghost Names’ On Public Payroll

  • Govt Bonds Fall By 21.09%

  • This Week Is Crucial For $3bn IMF Bailout

  • Consumer Inflation Eases Further To 52.8% In February

  • Fuel Prices To Drop Between 3% and 10% From March 16

  • Ofori-Atta Approves New Rates For Road Toll Reintroduction

  • Policy To Reduce Over US$10bn Imports Ready

  • Govt To Set T-Bill Rates At Lowly 15% In Cost-Cutting Move

  • Sri Lanka Expects Approval Of $2.9 Billion IMF Deal After China Support

 

 
 

Popular Videos

Kokrokoo Live On Peace 104.3 FM (22/03/2023)

Akan News @ Midday On Peace 104.3 FM (21/03/2023)

Peace Power Sports (21/03/2023)

Kokrokoo Discussion Segment On Peace 104.3 FM (23/03/2023)

Kokrokoo Discussion Segment On Peace 104.3 FM (22/03/2023)

Kokrokoo Live On Peace 104.3 FM (21/03/2023)

Peace FM Online and Despite Media

peacefmonline.com offers its reading audience with a comprehensive online source for up-to-the-minute news about politics, business, entertainment and other issues in Ghana

Follow us on social media:

Category

  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Opinion
  • Trivia
  • Foreign
  • Audio
  • Photos
  • Videos
  • Elections
Decision Time
Ghana Election 2020 2016 Elections
Services
Live Radio Audio on Demand Ghana Elections Advertise with Us
Useful Links
Despite Media About Us Contact Us Feedback Form Terms and Conditions Privacy
Our Brands
Despite Media UTV Peace FM Okay FM Hello FM Neat FM Peacefmonline
  • About
  • Advertise
  • Terms & Conditions
  • Contact
  • Privacy

© 2020 Peacefmonline.com - An online portal owned and managed by Despite Media

  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Articles
  • Trivia
  • Foreign
  • Live Radio
  • Photos
  • Videos
  • Audio
  • Election 2020

© 2020 Peacefmonline.com - An online portal owned and managed by Despite Media