What is this demand and supply nonsense that has been created for foreign currencies in African economies that cannot be controlled? Why should a dollar become a ‘commodity’ so fetish; when in fact it is for the payment of goods and services? Huh! Why? Who created this economic mess?
Is this one too from Adam? Or since Adam. I did not read economics but all economists could be quack unless the system is working. That is not funny.
Anyway the right steps are being taken. The dollar currency is not for you, so if the control of how much it can fetch water for you in Euros is under control, learn how it is being done and offer suggestions to the effect that you get the water and at the quality you want.
In the mean time it seems the black market is booming. But let’s wait and see! The financial intelligence unit of the Bank of Ghana now wants documentation on bulk movements of foreign transactions.
That is in order. Those businesses running their dollar economy in Ghana would soon realize that they are alone. The system would take care of itself. I trust Uncle Wampa on this one. The next time I visit the NCA website, the license for airspace to operate a radio or TV station would be in Ghana Cedis not dollars. Those for the Telecom operators, same. What is that? Now we can communicate in Ghana Cedis. And talk Ghana Cedis.
Now if the move to trade in the Chinese Yuan is revised in semantics and in ‘deed’ it would help our import centered economy. And motivate ourselves to improve on our manufacturing and subsequent export of finished products and raw exports.
The business of trading in the Yuan should not be the headache for the businessman, what I think can be done is that the invoice raised by the supplier should be paid by the bank upon request. The goods are supplied and you do your costing and pricing based on the Incoterms to the warehouse including business operational expenses.
Those who demand foreign exchange for their services would have their own headache. Who cares? The 100 dollar bill is not for sale! Neither is the 50 Ghana Cedi note. What went wrong? GDP, macro-micro economic indicators are confusing; that aside.
Now, the lecture we get is that exports earnings should fetch us the foreign exchange to be able to import. What is that? Uncle Wampa and his team are back on the drawing board dealing with a third world canker. Maybe they are not getting the picture I am painting here.
For all you know the international forex trade thrives on third world economies. Buying and Selling of legal tender…I am really confused. But funny enough I am quite comfortable with the term ‘exchange rate’.
The mess in the system does not need your economic text books. The new set of measures together with theis what you have to take notes if you are majoring in economics.
Ei! do I have an audience? Do I hear someone still complaining about the Cedi or I hear voices. Asem ooo! Anyway you can summit your thesis later to the academic institutions for endorsement. What is going on in Ghana is a real life practical approach to dealing with a situation amidst a ‘dangerously illiterate’ or informal international business mogul community, plying Dubai-China-Ghana.
And they are not trading by batter; just imagine. The state should and shall control its legal tender period! And by so doing also control that of other states under the WTO, comma!
I learnt that, in those days, apart from reporting any suspicious evil to the Chief and his elders, anything of value like gold and cowries should also be taken to the Chiefs palace.
Hunters were also to take certain portions or all of a catch to the chief’s palace. My understanding is that the survival and economy of the community was to be at the watchful eyes of the monarch. You were in trouble if you go contrary to that.
Back to the basics; the system hasn’t changed. Let get practical and come up with ideas. Communism, Socialism or Capitalism we shall evolve a new model along the way as we move on.
I like the idea, style and flow. It is as simple as that, from hence, cash redrawals over the counter from foreign currency accounts shall only be permitted for traveling purposes outside Ghana, and shall not exceed 10 thousand dollars or its equivalent in convertible foreign currency per person per travel.
Transfer of funds from one foreign currency denominated account to another is also banned. One would also need to provide detailed documents to support any request to make a transfer from your foreign currency account to any other account or a person outside Ghana.
All monies left in your foreign currency denominated facility shall be converted without your permission into local currency. Yes it’s clear, without your permission. So you can keep it under you bed or in your dog pen. It’s your choice to still live in your illusions.
During the weekend ona currency analyst Kelvin Adarkwa made a comment that implementation of the new measures should be a priority, saying the consequences would be felt in fluctuating prices of certain goods on the market.
That I agree with him, but economic shocks are normal but stability is the goal. The ‘mogul community’ should be realistic, they should not squeeze monies out of consumers to go and fund churches to gain God’s favor. Sow realistic seeds. Profiteering and evading Tax, especially VAT is ungodly. That dollar bill is not a commodity for them to ship for sale here in Ghana. That is money laundering. Nonsense! Oops…
Anyway back to the news item, Uncle Wampa I mean the Governor of the Bank of Ghana, Dr. Henry Kofi Wampa promised that the measures will be strictly enforced and that government agencies, departments and institutions have been directed to stop quoting their services or contracting loans in foreign currencies.
The Private Sector should now take their dollar business. This is not a matter of political colors. Ghana shall overcome, Ghana shall prevail. And we shall shine in Brazil, that our team will take their bonuses in Ghana Cedis and not US dollars. Would somebody say AMEN to that!
Also in the news two set of words won my attention, ‘draconian’ and ‘antiquated’ and coming from two members of the NPP Minority in Parliament is not funny. Minority spokesperson on Finance, Anthony Akoto Osei is of the view that the move will encourage the activities of black market operators. Well said. His colleague on the Parliament Finance Committee, Dr. Mark Assibey Yeboah – an economist also opines that the new policy direction of the central bank is antiquated.
But if the two of them will volunteer a solution to what is happening, are they not making political capital out of the present Bank of Ghana measures? Then it came to pass that the NPP would come to power and …’we inherited a sick economy’ crap. Go for bilateral loan interventions and it would be time for elections again.
They have rights to their opinions and being MPs they should know that the measures are synonymous with rules and regulations that are a preserve of the State for which Parliament is part. Enough said, and enough to fill my blog.
Still all hands on deck! GHANA 2014.