[ 2012-08-14 ]

US Dollar Shortage In Banks - Black Marketeers Cash In
Charles Benoni Okine reports on how black
marketering is beginning to cash in due to lack of
dollars from forex bureaux.

The virtual lack of foreign currencies,
particularly the US dollar from the formal system
(the banking system and licensed forex bureau) in
the country has opened up a lucrative business
opportunity for the players in the black market to
cash in on the situation.

Customers who are unable to obtain dollars from
the formal system are being forced to use the
black market as their last resort and the high
demand for the scarce currency has revived the
basic principle in economics which states that
“the higher the demand of a scarce commodity, the
higher the price”.

Instead of using GH¢1.9 in exchange for the US$1,
people in serious need of the currency are
compelled against their wish to buy the US dollar
for an average rate between GH¢2.3 and GH¢2.5.

In areas such as the famous Zongo Lane in the
Central Business District of Accra and the Nima
Market area, there are scores of people, dealing
in the black market business.

Investigations by the Graphic Business revealed
that in a situation where one wanted to buy the US
dollars in bulk, the customer is asked to wait
while a group of people go round to syndicate the
amount required.

According to them, the dollar is not in the system
and it was so difficult to come by, hence the more
Ghana cedis are required to be able to buy the
dollars.

Some of the players in the black market who spoke
on grounds of anonymity said they are able to
access the currency from trusted sources they
described as “somewhere”.

To them, no amount required in US dollars is too
big to find and were courageous to invite people
in need of any amount to get in touch for
assistance adding that “once they can pay us what
we offer, they will get what they want”.

In its quest to stabilise the fast depreciation of
the cedi against the major foreign currencies,
particularly the US dollar, the Bank of Ghana has
drastically reduced the supplies of the currency
to the commercial banks in the country.

The situation has become so dire that people who
operate dollar accounts with some of the banks are
unable to access their money.

For now, it is not clear where the problem seem to
be coming from, leaving those in need of the US
dollars frustrated.

According to the commercial banks the central bank
only releases less than 10 per cent of what they
demand to serve their customers.

They also indicated that even when the bank spends
all the money given, the Bank of Ghana demands an
explanatory report as why and how the entire money
was disbursed.

The banks described the situation as frustrating
and asked the public to direct their grievances
and frustrations at the central bank.

Meanwhile, the then Governor of the Bank of Ghana
now Vice President of the Republic, Mr Kwesi Bekoe
Amissah-Arthur debunked the rumours that the bank
has not been releasing dollars to the commercial
banks to serve their customers.

“What we asked them to do is to avoid giving more
than US$10,000 to a customer because this is not
done anywhere”, when he faced the Parliamentary
Select Committee that vetted him before he was
approved as the Vice President.

He also denied that the central bank had asked the
commercial banks to charge fees on the dollar
accounts that their customers operate saying “we
have not asked any bank in the country to charge
customers who operate foreign accounts with
them”.

Mr Amissah-Arthur said the central bank had taken
measures that are expected to stabilise the cedi
against the dollar and added that, the move was
showing some results in spite of the inconvenience
to some people.

The President of the Ghana Union of Traders
Association (GUTA), Mr George Ofori, has described
the lack of dollars in the system as unfortunate
and a worrying development which is frustrating
traders and importers.

He said central bank needed to be clear on its
directives to enable the public to know what the
real policies are regarding the maintenance of
forex accounts in the banks.

“It is not clear which of the banks is saying the
truth about the shortage of the dollars at the
banks and that is frustrating”, he said.

He attributed the reason for the weak cedi to the
presence of the Chinese engaged in direct trading
in the country saying “they are able to convert
millions of Ghana Cedis into dollars, send it to
their home country to import goods to retail to
Ghanaians”.

He said after selling, they repatriate the profit
to their home country and those are some of the
reasons the cedi has, and continue to lose its
strength.

Mr Ofori said unless the situation in brought
under control, the situation can only get worse.

Source - Daily Graphic

... go Back