The Ghana Real Estate Developers Association (GREDA) has dissociated itself from estate developers charging and quoting prices of their properties in foreign currencies.
According to the Association, most of the agencies doing that are not members of GREDA because all of its members have been warned against quoting prices of houses and other products in foreign currency.
The president of the Association, Patrick Ebo Bonful, told Joy Business that the bank of Ghana must ensure that these firms are made to face the law.
“Most of the time, what we have realised is that all these people flout the law on foreign exchange and advertise properties in dollars and Euros then people tag them as GREDA.
“It is sad because they are not members of GREDA and we have sensitised our members and made them understand that we need to abide by the law so that wherever there are challenges, we can engage with the authorities,” he disclosed.
He is also calling on the central bank, the Bank of Ghana, to cover input suppliers with the law governing foreign exchange.
“We will be happy if the law will be applied to the latter so that even our input suppliers will be made to fall in line to charge in the cedi.
“Members of the Association have been warned that the law is bigger than anybody and therefore we don’t charge or quote in dollars again when the bank of Ghana wrote to the Association,” he said.
The Bank of Ghana has raised concerns about the impact of the use of other currencies other than the cedi in the conduct of business in the country recently.
To regulate dealings in foreign currencies and curb the unauthorised pricing of goods and services in dollars and other currencies, the Bank has issued a series of Notices and Operational Guidelines based on provisions in the Foreign Exchange Act, 2006(Act723).
Despite the issuance of Notices, some companies, institutions and individuals are still dealing in the business of foreign exchange without authorization from the Bank of Ghana.
The associated cost of unauthorised foreign currency dealings has been high. For instance, speculative interest in foreign currencies, especially the dollar, puts pressure on the cedi whenever demand goes up, always generating concerns about the possible effect of currency depreciation on inflation.
With high costs of foreign exchange intervention impacting on the Bank’s balance sheet, among other factors, directives have been issued, prohibiting pricing, advertising and receipt or payment of goods and services in foreign currency in the country.
In the foreign exchange market, the Central Bank has also issued directives to help sanitise and promote best practices – especially when it comes to market conduct – by both inter-bank dealers/players and forex bureaux operators.
The sole legal tender in Ghana cedi (GH¢) and Ghana pesewa.
Thus, the central bank wants the general public to understand that pricing, advertising and receipt or payment in any other currency other than the Ghana cedi and pesewa is prohibited.