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Tag: Bank of Ghana

  • Bank of Ghana cracks whip on pricing in dollars

    The Bank of Ghana (BoG) is taking steps to stem the dollarisation of the Ghanaian economy by enforcing laws that bar the pricing of goods and services in American dollars and other foreign currencies.

    The dollarisation of the economy has contributed to the perrenial unfavourable fluctuation of the cedi and its attendant effect on inflation and cost of living.

    Bank of Ghana sacks staff for accepting over GHC400k bribe in Sibton deal

    But a team from the Other Financial Institutions Supervision Department of the BoG is moving to prevent individuals and institutions from pricing in dollars.

    The planned nationwide campaign is to ensure that goods sold in the country are priced only in cedi.

    The team has been descending on institutions such as hotels, motor dealers, real estate firms, among others, warning them to desist from pricing in dollars or face the full rigours of the law. The law state that anyone found culpable will face prison terms of not more than 18 months or 700 of penalty points or both.

    The move by the Central Bank is seen by many as a strategic one that will prevent a number of institutions and individuals from desisting in pricing in dollars.

    Minority accuses Bank of Ghana of not helping collapsed banks

    Adjoa Takyiwaah, Head of Forex Bureau, said the Bank will first seek to caution the firms but will sanction them later if they continue to flout the Foreign Exchange Act.

    “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 a 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.

    Source: thefinderonline.com

  • Adongo threatens to sue Bank of Ghana for flouting its own laws

    Isaac Adongo, the Member of Parliament for Bolgatanga Central, has threatened to sue the Bank of Ghana (BoG) over what he called its non-compliance with its own laws.

    In the letter to the Attorney General written by his lawyers and sighted by citinewsroom.com, Mr. Adongo suggested that it was ironical for the Bank of Ghana to cleanup the financial sector with its formulated law but “[the BoG] has itself fallen foul of its obligations under the Bank of Ghana Act.”

    Read: Bank of Ghana sacks staff for accepting over GHC400k bribe in Sibton deal

    The lawyers referenced section 53 of the Bank of Ghana Act which requires the BoG to submit a report to Parliament once every six months on all foreign exchange received and payment and transfers outside Ghana, the conduct of activities under its mandate and any other relevant functions.

    But Mr. Adongo stated that “the Bank of Ghana has either failed and or neglected to comply with this statutory reporting requirement and is therefore in clear breach of the Bank of Ghana Act.”

    “In the circumstances, our client instructs us to serve notice, which we hereby do, that he intends to proceed to court to compel the Bank of Ghana to comply within the law within one month of receipt of this letter by your office.”

    Mr. Adongo had penned an article on this issue where he called the BoG “a lawless entity.”

    He said the Central Bank was setting bad examples for corporate governance in the financial sector.

    “You will recall that by May 2018, BoG was in breach of its obligation to publish its audited financial statements by 31st March. I subsequently drew attention to this breach and it was subsequently rectified.”

    Read: Irresponsible Bank of Ghana caused banking crisis Akufo-Addo

    In that article, he was questioning the source of $800 million the BoG was to use to shore up the cedi which was fast depreciating at the time.

    The MP urged the BoG to “comply with its own obligations to Parliament and answer for its dwindling reserves and the deteriorating health of the cedi.”

     

    Source: citinewsroom.com

  • BoG increases minimum capital for Mobile Money firms by 300%

    The Bank of Ghana (BoG) has increased the minimum capital for Mobile Money companies from GH¢5 million to GH¢20 million.

    This means an increase of about 300%.

    According to a statement from the BoG, “The emergence of new payment streams, institutions such as financial technology companies and the general acceptance of electronic money have necessitated the enactment of the Payment Systems and Services Act, 2019 (Act 987) to provide the legal and regulatory framework for the orderly development of the payment system.”

    Read: Keep your eyes on banks SEC boss to BoG

    “To operationalize Act 987, the Bank of Ghana hereby provides the minimum capital requirements, permissible activities and fees for all categories of payment service providers and financial technology companies.

    “The Bank of Ghana in furtherance of its objective of fostering financial innovation has taken into consideration the size, nature and characteristics of each financial technology company in prescribing the required minimum capital, governance and systems requirements,” the statement added.

    The Breakdown

    The BoG in the statement grouped the various licences under the Payment System Providers (PSP) into five PSP Electronic Money Issuer GH¢20 million, PSP Scheme (Payments cards like Visa and MasterCards) GH¢8 million, PSP Enhanced Licence (Payment Platforms like ExpressPay etc) GH¢2 million, PSP Medium Licence (Sub agents for the payment platforms) GH¢ 800, 000 and Standard Licence (startups fintechs.) No capital required.

    According to sources close to the Bank of Ghana, they settled on these new capital levels after extensive engagement with all the players in the sector.

    The companies have up to nine months to meet the new capital levels.

    According to the Payment Systems and Services Act, 2019 (Act 987), all mobile money operators need to set up a subsidiary and will have to seek approval from the Bank of Ghana.

    Ghana going cash-lite

    The Bank of Ghana has set 2024 as a deadline for the country to move towards an era where little cash is used in financial transactions.

    The move is part of efforts to reduce the cost of doing business and improve revenue collections in the country.

    Read: BoG pegs minimum capital for Mobile Money companies at GHC20m

    The government has said it would start electronic payments for its services from June this year.

    This has been influenced by mobile number interoperability.

    A 2016 Bank of Ghana Report revealed that the use of physical cash as the medium of exchange was on a continuous decline due to the increase in the use of other sources of payment, including cards, mobile money and the Ghana Interbank Payment and Settlement Systems (GhIPSS) Instant Pay.

     

    BoG pegs minimum capital for Mobile Money companies at GHC20m by The Independent Ghana on Scribd

     

    Source: Myjoyonline.com

     

  • BoG abandons old website; gets new one

    The Bank of Ghana (BoG) has announced that it is re-designing its website in order to serve the public well.

    According to the central bank, the new website has features that simplify access to information on it.

    Read:Cyber fraudsters attempt stealing GH¢329.7mn from banks BoG report

    A statement signed by Frances Van-Hein Sackey (Mrs), Secretary to the Governor said: “This new website retains the best features of the old and also includes several additions that make it easy to navigate and access while focusing on simplicity. The new website is also interactive, user friendly and has an improved overall “look and feel”.

    Read:Poor BOG supervision caused banking crisis Mahama confesses

    “The Bank of Ghana is therefore keen to make use of this digital channel to enable diverse stakeholders access information in an intuitive and seamless manner.”

    Source: laudbusiness.com

  • Irresponsible Bank of Ghana caused banking crisis Akufo-Addo

    President Nana Akufo-Addo has blamed the Bank of Ghana for the crisis in the banking sector which led to the collapse of nine local banks as well as the insolvency and consequential licence revocation of close to 400 microfinance companies and some financial houses.

    “This famous banking scandal which has engulfed all of us, if the Bank of Ghana had acted responsibly and dealt with some of these issues like it should have been done, we would have never gotten in the situation where we are now”, the President bemoaned when he met the Council of State at the Jubilee House on Monday, 19 August 2019.

    “It was lax”, the President complained.

    Banks more profitable after Bank of Ghana clean-up Ofori-Atta

    “As a result, look at the amount of money that the public exchequer on the first phase of the banking scandal; GHS13 billion, had to come from public funds to support the industry and make sure that the funds were secured”, the President noted.

    The central bank recently revoked the licences of 23 more microfinance and finance houses and also warned the rural and community banks as well as other microfinance firms to recapitalise by February 2020 or face sanctions.

    Source: classfmonline.com