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Ghana Forex Rules and Treasury Bills !!!
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sizzla
#1 Posted : Monday, March 03, 2014 9:07:32 AM
Rank: Member


Joined: 6/10/2006
Posts: 201
Location: Nairobi
Guys i am in a dilemma, the recently introduced Forex rules in Ghana means that most of my investments which were valued at approx $15000 USD are held in limbo. In addition, the Bank of Ghana has scrapped transfers between accounts denominated in a foreign currency.

This means that even if i have to invest in Ghanaian T-Bills, i have to convert to cedis first before trading. Due to the currency crisis the T-bills rates are quite favourable See Link.

What can you advise in light of these developements or should i simply try to salvage what i can?
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Pure millioneare(PM)
#2 Posted : Wednesday, June 18, 2014 5:47:38 PM
Rank: Member


Joined: 11/1/2008
Posts: 38
Sizzla,
Its sad that noboy could help for your dilemma in Ghana investment.
I guess you are said your funds are in Limbo because you cannot transfer the USD electronically to your bank outside Ghana? I suppose you living outside Ghana?

I advice you invest in Treasury bills because conversion from USD is Gh Cedis favorable. The FOREX restrictions may change in future and your eggs will have piled up..

I have been interested in this market for sometime now. I am going there soon and hope to do similar investment in the in Ghana lucrative Tbill market..

Did you already move ahead?
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KenyanEconomist
#3 Posted : Wednesday, June 18, 2014 6:51:51 PM
Rank: New-farer


Joined: 5/7/2014
Posts: 40
Pure millioneare(PM) wrote:
Sizzla,
Its sad that noboy could help for your dilemma in Ghana investment.
I guess you are said your funds are in Limbo because you cannot transfer the USD electronically to your bank outside Ghana? I suppose you living outside Ghana?

I advice you invest in Treasury bills because conversion from USD is Gh Cedis favorable. The FOREX restrictions may change in future and your eggs will have piled up..

I have been interested in this market for sometime now. I am going there soon and hope to do similar investment in the in Ghana lucrative Tbill market..

Did you already move ahead?


The Currency is depreciating ~6% per month, while the T -Bills only pay ~ 2% per month. how will you make a real return?
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whiteowl
#4 Posted : Wednesday, June 18, 2014 9:39:49 PM
Rank: Veteran


Joined: 4/16/2014
Posts: 1,420
Location: Bohemian Grove
sizzla wrote:
Guys i am in a dilemma, the recently introduced Forex rules in Ghana means that most of my investments which were valued at approx $15000 USD are held in limbo. In addition, the Bank of Ghana has scrapped transfers between accounts denominated in a foreign currency.

This means that even if i have to invest in Ghanaian T-Bills, i have to convert to cedis first before trading. Due to the currency crisis the T-bills rates are quite favourable See Link.

What can you advise in light of these developements or should i simply try to salvage what i can?



If your investment is held in USD, you can afford to seat around until their transfer rules changes . The other options would be to go all the way there and walk out with your money in a briefcase and send it to destination of your choice using western union/moneygram or they've restricted that too?
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sizzla
#5 Posted : Thursday, June 19, 2014 8:29:57 AM
Rank: Member


Joined: 6/10/2006
Posts: 201
Location: Nairobi
Thanks for your advise my good people, i actually decided to sit out the crisis although things are worse off now with the Cedi trading at 2.9 to the USD. However after talking to my portfolio manager i was able to get a good compromise which caps my capital outflows at USD 6250 which is good enough for me. I am still investing in Ghana because i believe they will get over this bumpy patch.
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Pure millioneare(PM)
#6 Posted : Friday, June 20, 2014 3:09:01 PM
Rank: Member


Joined: 11/1/2008
Posts: 38
KenyanEconomist wrote:
Pure millioneare(PM) wrote:
Sizzla,
Its sad that noboy could help for your dilemma in Ghana investment.
I guess you are said your funds are in Limbo because you cannot transfer the USD electronically to your bank outside Ghana? I suppose you living outside Ghana?

I advice you invest in Treasury bills because conversion from USD is Gh Cedis favorable. The FOREX restrictions may change in future and your eggs will have piled up..

I have been interested in this market for sometime now. I am going there soon and hope to do similar investment in the in Ghana lucrative Tbill market..

Did you already move ahead?


The Currency is depreciating ~6% per month, while the T -Bills only pay ~ 2% per month. how will you make a real return?



@KenyaEconomist:
You mean that inflation is 72% per annum while tbill is 24% per annum? Grrrrr!
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