Ghana plans to allow foreigners in short term securities transactions

The Bank of Ghana has initiated moves to allow foreigners to participate in the country’s short term securities transactions.

This means foreigners will compete with locals to purchase primary bond issues of less than three years if the new move becomes fruitful.

The central bank announced November 27, 2013 that it is in discussions with the Ministry of Finance to “allow foreign participation in the 1 and 2 – Year Government of Ghana securities transactions”.

Dr Kofi Wampah, Governor of the BoG explained to reporters that the move is to ensure “competitive pricing” in the market.

Dr Wampah said the Bank for some time now observed that local participation in the short term securities transactions alone doesn’t promote competition in terms of pricing.

He did not give further details when the new move will take off.

By Ekow Quandzie