Dollar Shortage Hits Banks

By Esther Awuah

Unconfirmed reports reaching Business Guide indicates that there is shortage of foreign currencies, particularly the dollar, in the banks.

Though major banks contacted were tight lipped on the issue, some foreign account holders said they had not been able to withdraw foreign currencies from their accounts.

Since January, the cedi has continued to depreciate against major foreign trading currencies like the dollar.

The Bank of Ghana (BoG) intervened by reintroducing the treasury bills in tenors of 30 days, 60 days and 270 days and a review of the statutory reserve requirement of banks in order to arrest the situation.

However, some financial experts have argued that the measures introduced by the Central Bank would not be able to solve the problem.

A foreign account holder, who pleaded anonymity, told BUSINESS GUIDE that one of the leading banks in the country did not allow him to withdraw $30,000.

Instead, he was asked to withdraw the amount in installments of $10, 000 but when he went for the final part, the bank told him the dollar was scarce and he could not be served.

This development was confirmed by Mohammed Amin, a Forex bureau operator in Accra Central, who said the situation had resulted in further depreciation of the cedi.

He said “as a result of the shortage, the dollar is now selling at GH¢ 2.04 and bought at GH¢2.10, while the pounds is selling at GH¢3.6 and bought at 3.08.”

He stated that forex bureau operators were facing difficulties in obtaining foreign currencies, particularly the dollar because their main sources of supply- banks- do not have enough to sell, adding “so we have to rely on traders from Nigeria and Togo who come to Ghana to do business.”

He acknowledged that even though the situation was encouraging ‘black marketing’ that was the only way they could also stay in business.

Some economic experts have attributed the shortage of major foreign currencies partly to panic among foreign account holders following earlier reports that the BoG was considering converting all foreign currency accounts held by individuals to cedi.

The BoG has blamed forex bureau operators for accepting deposits and engaging in large foreign exchange transactions but Mr. Amin denied the accusations.

He said “these are mere allegations because a forex bureau cannot operate as a bank.”

He said most people in possession of foreign currencies were keeping them rather than sending them to the banks for fear that they might be converted into Cedis.

“The rate at which the cedi is falling against the dollar, I can bet you that GH¢ 1 will go for $ 3 before the year ends,” he predicted.