Ghana’s Securities and Exchange Commission (SEC) has directed local fund managers to cut back on offshore investments as it seeks to protect the cedi currency and strengthen macroeconomic stability.
The country is a major gold and cocoa producer and is emerging from its most severe economic crisis in decades. It is expected to complete a three-year International Monetary Fund support programme in August.
The SEC said in a circular late on Friday that with immediate effect, local fund managers will not be allowed to invest more than 20% of their funds under management in foreign securities. Funds that were previously allowed to invest all their money offshore will be limited to 70%.
Any investment in foreign securities can only be made in countries that share information with Ghana’s SEC, the regulator said.
Reuters
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