Post by prcapital on Jun 13, 2012 19:20:30 GMT 1
Dear Esteemed Investors,
In view of your valued interest in investing in micro and small businesses in Ghana to support economic empowerment of these probably marginalized micro and small enterprises; you might have observed the recent instability the Ghana Cedi (local currency) is experiencing and I deem it obligatory to inform you of the development.
The fall of the value of the Ghana Cedi is a concern that has been attributed to a combination of factors, critical among these factors is what is popularly referred to as “dollarization of the Ghanaian Economy” where Ghanaians have adopted the US Dollar as the preferred currency in most of their internal transactions, local prices are quoted in US Dollars and leading to sudden upsurge of U S dollar and rendering the Ghana Cedi weak.
Today, the phenomenon in Ghana is goods and services including rents, school fees, real estates, hotel rates, cable service, also salaries and many others are quoted in US Dollars instead of Ghana Cedi. During the last twelve months, the Ghana Cedi is asserted to have depreciated by 22.96 percent against the US Dollar. Until now, anybody in Ghana could buy unlimited US Dollars as he or she wants, without any question asked. The practice has caused downward pressure or depreciation on the local currency.
Invariably, Government regulation to reverse the trend of dollarization as a way to boost up the Ghana Cedi considered eliminating the use of US Dollar in day-to-day transaction and further discouraging the practice of keeping the US Dollars and other foreign currencies as a store of value. Therefore the Government of Ghana, particularly the Central Bank, Bank of Ghana, has put up a number of directives including controlling the trading of foreign currencies at the local banks. Presently, one would require appropriate documentation to purchase the foreign currency; the process has been quite restrictive therefore causing considerable delays in foreign currency transactions. This has also affected our weekly foreign currency and transfer transactions causing backlog.
Fortunately, the process has resumed and normalized for PRC’s weekly operations, as the Central Bank gave direct consent to our foreign currency transactions from inception. However, we presume that we would require some little time to clear the backlog and catch up with the weekly transfer due to limitations on the foreign currency holdings of the local banks.
We implore you our esteemed investors to be a little more patient with us as we improve to regularize the situation. On the other hand, we reckon your patience as supportive of the policy directive, which would contribute to bringing about improved and sustainable stability of the Ghana Cedi.
We are most grateful for your continued support and commitment to this course and please accept the assurance of our highest esteem.
PRC
Felix Quansar
In view of your valued interest in investing in micro and small businesses in Ghana to support economic empowerment of these probably marginalized micro and small enterprises; you might have observed the recent instability the Ghana Cedi (local currency) is experiencing and I deem it obligatory to inform you of the development.
The fall of the value of the Ghana Cedi is a concern that has been attributed to a combination of factors, critical among these factors is what is popularly referred to as “dollarization of the Ghanaian Economy” where Ghanaians have adopted the US Dollar as the preferred currency in most of their internal transactions, local prices are quoted in US Dollars and leading to sudden upsurge of U S dollar and rendering the Ghana Cedi weak.
Today, the phenomenon in Ghana is goods and services including rents, school fees, real estates, hotel rates, cable service, also salaries and many others are quoted in US Dollars instead of Ghana Cedi. During the last twelve months, the Ghana Cedi is asserted to have depreciated by 22.96 percent against the US Dollar. Until now, anybody in Ghana could buy unlimited US Dollars as he or she wants, without any question asked. The practice has caused downward pressure or depreciation on the local currency.
Invariably, Government regulation to reverse the trend of dollarization as a way to boost up the Ghana Cedi considered eliminating the use of US Dollar in day-to-day transaction and further discouraging the practice of keeping the US Dollars and other foreign currencies as a store of value. Therefore the Government of Ghana, particularly the Central Bank, Bank of Ghana, has put up a number of directives including controlling the trading of foreign currencies at the local banks. Presently, one would require appropriate documentation to purchase the foreign currency; the process has been quite restrictive therefore causing considerable delays in foreign currency transactions. This has also affected our weekly foreign currency and transfer transactions causing backlog.
Fortunately, the process has resumed and normalized for PRC’s weekly operations, as the Central Bank gave direct consent to our foreign currency transactions from inception. However, we presume that we would require some little time to clear the backlog and catch up with the weekly transfer due to limitations on the foreign currency holdings of the local banks.
We implore you our esteemed investors to be a little more patient with us as we improve to regularize the situation. On the other hand, we reckon your patience as supportive of the policy directive, which would contribute to bringing about improved and sustainable stability of the Ghana Cedi.
We are most grateful for your continued support and commitment to this course and please accept the assurance of our highest esteem.
PRC
Felix Quansar