Ghanaian Gov't Lists Penalties for Citizens Transacting in Foreign Currency, it Includes 18 Months In Jail

Ghanaian Gov't Lists Penalties for Citizens Transacting in Foreign Currency, it Includes 18 Months In Jail

  • The Ghanian Cedi is in bad shape, and the Ghanian authorities has issued a warning to its citizens.
  • According to a recent Bloomberg analysis, the Ghana Cedi ranked as the worst  performing African currency in the first three months of 2022.
  • To halt Cedi depreciation, the Bank of Ghana has warned residents that they risk severe penalties, including an 18-month prison sentence, if they transact in foreign currencies

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The Bank of Ghana charge 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 Apex bank noted that such illegality has severe consequences.

Ghanaian, foreign currency
The street of Ghana Credit: gettyimages
Source: Getty Images

The statement

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”.

Read also

It is illegal to price, pay and receive payments in dollars without approval – BoG warns businesses

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The statement added that 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.

While warning 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.

He said:

“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.

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Is QNET Ghana legal? How to join, branches, products, salary, controversy

Naira vs Cedi

Meanwhile, Ghanaian currency increased further in value to the Nigeria Currency as at the end of trading on Friday, 8 April 2021.

Check on the currency market shows that 1 Cedi value increased to N55.79 compared to N54.42 it closed on Thursday.

Source: YEN.com.gh

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