The Governor of the Bank of Ghana, Dr. Johnson Asiama, has announced plans to introduce a new foreign exchange law as part of efforts to enhance the country's banking sector. This initiative is one of six key interventions Dr. Asiama aims to implement during his tenure, all designed to transform Ghana's financial landscape.

The current Foreign Exchange Act 2006 (Act 723) regulates foreign exchange transactions in Ghana, establishing the framework for buying, selling, and transferring foreign currencies within the country, as well as facilitating international payments. The law also provides guidelines for managing foreign exchange movements and ensuring compliance with currency exchange and remittance laws.

Dr. Asiama emphasized that once the new law is enacted, the banking sector will witness substantial improvements in foreign exchange trading, fostering stability and efficiency. The proposed reforms seek to modernize and improve upon the existing regulations, making Ghana's financial markets more attractive to both local and foreign investors.

The current law has undergone several revisions since its enactment in 2006, with the Bank of Ghana issuing notices to provide further guidance on its implementation. Key provisions of the Act include the removal of limits on non-resident foreign investors' holdings in securities listed on the Ghana Stock Exchange, and the allowance for non-resident companies to issue securities on Ghana's stock market.

The law also defines terms such as "securities listed on the Ghana Stock Exchange" and "dealings in listed securities," and waives certain obligations under the Exchange Control Act 1961 (Act 71) concerning listed securities. Additionally, securities registration officers (company registrars) are required to submit monthly reports on transfers involving externally resident Ghanaians and non-Ghanaian investors.

The introduction of the new foreign exchange law is expected to have a significant impact on Ghana's financial sector, attracting more investors and enhancing the country's economic growth. The move is seen as a positive step towards modernizing Ghana's financial landscape and increasing its competitiveness in the global market.

As the Bank of Ghana works towards implementing the new law, industry experts and stakeholders will be watching closely to see how it will shape the country's financial future. With the aim of transforming Ghana's financial landscape, the new law has the potential to bring about significant changes to the country's banking sector and economy as a whole.