Ghana implements measures to limit offshore investments in order to safeguard the cedi and enhance economic stability

The Securities and Exchange Commission (SEC) of Ghana has instructed local fund managers to reduce their offshore investments in an effort to safeguard the cedi currency and enhance macroeconomic stability.

Ghana, a significant producer of gold and cocoa, is recovering from its most serious economic crisis in decades and is anticipated to finish a three-year IMF support program in August.

The SEC announced in a circular late on Friday that, effective immediately, local fund managers are prohibited from investing more than 20% of their managed funds in foreign securities. Funds that were once permitted to invest their entire capital offshore will now face a cap of 70%.

The regulator stated that investments in foreign securities are permitted only in countries that provide information to Ghana’s SEC.