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Amendment of monetary policy

By a notice published by the Bank of Ghana on March 27 1997, to take effect on April 2 1997, the minimum cash reserve for banks was changed from 5% to 8% (inclusive of foreign currency deposits); the minimum secondary reserve was also changed from 52% to 35% of total deposit liabilities (inclusive of foreign currency deposits).

Foreign currency deposit is a new category and it is apparently on account of it that the adjustments to the minimum cash and secondary reserves requirements have been made. The secondary reserve comprises government securities, 91-day and 180-day Bank of Ghana bills, one-, two-, three- and five-year Bank of Ghana Bonds, call money with Discount House approved Commodity Bills, Export Finance Bills and Rural Finance Bills.

Law on acquisition or rental of immovable property by external companies repealed

Under law 150, any rent or premium payable in respect of any immovable property under any lease or tenancy agreement granted by any person to a diplomatic mission, consulate, international organization, an external company or an official of any of those institutions, or the purchase price of any property sold or assigned to any such entity or official thereof was determined and paid in convertible currency after the rent or purchase price had been approved by a committee established under the law.

Payment in respect of rent or purchase price was made through the Secretary for Foreign Affairs by cheque drawn in favour of the Bank of Ghana to the credit of the landlord or owner of the property concerned. On clearance of the cheque, the Bank of Ghana paid to the owner of the property, in local currency at the prevailing rate of exchange, such part of the amount as the committee determined.

The balance in convertible currency was paid into a foreign currency account with a commercial bank designated by the owner of the property. This law, with its cumbersome procedures, was repealed together with several other enactments by the State Law Revision Act, 1996, Act 516 with effect from September 13 1996.

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