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Business News of Saturday, 8 February 2014

Source: citifmonline.com

Foreign currency account holders threaten to sue banks & BoG

Many commercial banks as well as the Bank of Ghana (BoG) are likely to be hit with a tall list of legal suits following the introduction of new and revised forex rules by the BoG.

This is because some holders of foreign currency and exchange accounts have threatened to hurl their banks and the Bank of Ghana to court over the new rules.

The revised rules which took effect two days ago, among others, prohibit the issuing of cheques or cheque books in Foreign Currency Accounts (FCA).

It also prohibits the withdrawal of not more that 10,000 dollars over the counter.

Holders of foreign accounts will also not be permitted to transfers from one foreign currency denominated account to another and contract loans in foreign currencies.

The account holders are challenging the Bank of Ghana’s directive prohibiting the withdrawal of more than 10,000 dollars and the conversion to cedis when they make withdrawals on their dollar accounts.

Citi Business News has also gathered individuals and businesses with foreign currency accounts have begun making massive withdrawals from their banks following the introduction of new and revised Forex rules.

A bank official who spoke to Citi Business News said efforts to convince customers to keep their accounts have yielded no positive results.

“This will hurt the banking industry we will lose our customers nobody will open a dollar account and will be pleased if you convert it to cedis when they want to make a withdrawal, and we are finding it very difficult to calm tempers.”

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