Inward remittance hits $1.5 billion in 9 months

Accra, Nov. 21, GNA - Total inward remittances from Ghanaians abroad increased significantly from the beginning of the year reaching 1.5 billion dollars at the end of September.

This is a sharp rise compared to the 1.3 billion dollars for last year, Mr Emmanuel Asiedu-Mante, First Deputy Governor of the Bank of Ghana (BoG) said in Accra on Friday.

He was speaking at the opening of The Trust Bank Western Union Money Transfer Service Centre.

Mr Asiedu-Mante said the massive level of foreign exchange inflows was a reflection of confidence in the Ghanaian economy, adding: "The benefits to be derived from this remittances are obvious".

He welcomed the introduction of technology in the banking industry, saying; "while it is smoothening operations, it is fraught with challenges associated with money laundering and terrorist financing".

The Deputy Governor advised that while the remittances flow through the banks, the banks would remain vigilant to track unusual amounts as well as their beneficiaries.

"You will have to put in place some identification procedures for identifying suspicious transactions. The challenge rests with your adherence to the systems of control and to avoid complacency. The Central Bank will not relent at monitoring these schemes to assure stakeholders of its integrity," he said.

Mr Asiedu-Mante said the increase in remittances was the result of the increased number of banks transacting business with Western Union that culminated in raising the total number of persons abroad now using the service.

He said the era when non-resident Ghanaians relied on people to physically carry money to relations at home was fast becoming history.

"The country is the ultimate beneficiary because the remittances contribute in the build up of the country's stock of foreign exchange receipts, which is used to finance trade, increase foreign reserves and ultimately provide support in the stabilisation of the currency," he said.

Mr Asiedu-Mante expressed the hope that the increased volume of business and benefits derived from the associated economies of scale would prompt banks to reduce the levels of charges on remittances in order to bring more people to use official channels for remittances.

The Deputy Governor charged banks to lead the crusade to encourage Ghanaians to use the financial system for the transmission of funds.

He explained that the Central Bank often had reports about Ghanaians arrested with large sums of money on them at foreign airports with the excuse that it was expensive to use the banks.

Mr Asiedu-Mante warned that the Central bank in collaboration with the security agencies were on alert and would not hesitate to arrest offenders.

He asked the banks to endeavour to have a common platform for the use of electronic cards.

"It is amazing that banks continue to pursue their automation projects individually and are not co-operating in joint efforts for purposes of cost sharing", he said.

Mr Asiedu-Mante said it was time for banks to consider ways in which they would harness their collective resources to achieve economies of scale and beat down the cost of some of these operations for their own benefits as well as their customers.

Western Union Money Transfer has a market capitalisation of 20 billion dollars and is represented in 180 countries worldwide, 45 of them in Africa.