Government Measures on Forex bureaux yielding results
Government Measures on Forex bureaux
yielding results
Accra (Greater Accra Region) 04 May 2000
The recent "tough" measures announced by Mr Kwame Peprah, Minster of Finance, to arrest the rapid decline of the cedi, and streamline the general economic down turn has started yielding positive results.
The immediate ones, as seen in a random survey by the Ghana News Agency is a drastic reduction in the exchange rate of the major trading currencies, namely the dollar and pound, to the cedi both at the forex bureaux and the "black market".
A tour of a number of forex bureuax in the Central Business District of Accra indicated that most operators have reduced the buying and selling rates of the dollar and pound sterling to the cedi as compared to the situation before the Finance Minster's announcement.
The dollar was going at 4,500 cedis for buying and 4,700 cedis for selling while the pound was between 6,800 and 7,000 cedis.
At the height of the crisis following a severe trade shock and regular appreciation of the price of crude oil on the world market, the dollar rose to 6,500 cedis for buying and 7,000 cedis for selling while the pound went for between 7,500 cedis and 8,500 cedis.
The forex bureau operators also seem to be sticking to the rates on their boards but say this is not attractive to customers who expect that the rates could be higher, thus confirming the belief of Mr Kwasi Fosu Gyabaah, President of the of the Association of Forex Bureaux Operators that their clients are being driven to the "black market."
At the real market, operators are quite apprehensive of customers as they virtually quote nearly the same rates quoted by the forex bureaux to the disappointment of their patrons who usually expect a higher exchange rate.
The real market operators however are easier to convince for a rise in their rates if they can trust you.
Most of the real market operators told the GNA that they doubt the government's ability to sustain a continuous supply of foreign exchange, saying this move is further eroded through the dubious practice of some importers.
"This is because some of them, on securing foreign cash do not carry on their transactions through the banks. Rather they conduct a physical transfer of the money.
"A practice which sends us back to square one, where severe lack of foreign exchange results in a relatively higher exchange rates.
"Black market" operators concede that the government's measures have led to a drastic fall in the volume of foreign cash purchased especially the dollar and the pound, per day.
Money market analysts said the government, through central bank intervention, should not be direct on the market. "Rather it should go to the medium to large scale manufacturing concerns who usually make huge purchases and will therefore need the monies most".
They also urged the government to ensure that the measures put in place to regulate foreign currency transactions are strictly co-ordinated to ensure compliance.
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Accra (Greater Accra) 04 May 2000
Mr Joseph Abraham, Executive Director (Corporate and Institutional Banking), Standard Chartered Bank Ghana Limited (STANCHART), was on Wednesday appointed the new Managing Director of the Bank.
He succeeds Mr Vishnu Mohan, who has been transferred to Thailand as the Managing Director, Mr David Andoh, Chairman of STANCHART Board, disclosed at a meeting by the bank in Accra.
Mr Andoh praised customers of the bank for their support, by way of constructive criticisms and suggestions, which, he said, had helped improve the bank's services over the years.
He commended Mr Mohan for leading the bank to perform highly and win several awards during his tenure office.
Mr Abraham, a Stanford graduate was transferred to Ghana from London in 1997.
He assured customers of continuity, saying: "I will continue to focus on the customers by bringing in more products for their benefit", adding, "I will commit the government and multi-lateral institutions to support the productive sectors of the economy."
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