Mr.
Speaker, the Exchange Control Act of 1971 is aphoristic at this time. The Bill came into being at a time there was shortage of foreign exchange and there was the need to ration the use of cash. I think, since 1989 when foreign exchange bureau came into being, this idea of rationing foreign exchange had become open.
However, I seem not to agree with the hon. Member who just spoke (hon. Sallas- Mensah) that people can carry across as much as $20,000 or $30,000 out of the country. I think that is not right. Even in the United States of America these days one cannot carry more than $10,000, otherwise one will have to explain. There should be a way for people to carry money either in drafts or get them transferred to wherever they are going to do their purchases.
But this idea of cash economy, where everything should be cash -- you carry cash, thirty thousand-dollar cash through the airport to Dubai to buy goods -- I think, is also not proper. I think the law should make it possible for people to carry travellers' cheques, to carry credit cards, and so on, to send their money out; otherwise, we will be creating avenues for people to launder money. I can go with relatives and all; each of us will be carrying thirty thousand dollars, and I think that is not proper.
So Mr. Speaker, I support the Bill; it is
a good Bill but I think provisions should be made to avoid unwanted consequences.
Mr. A. W. G. Abayateye (NDC --
Sege): Mr. Speaker, thank you for giving me the opportunity to contribute to the motion on the floor.
Indeed, Mr. Speaker, the Foreign
Exchange Bill is appropriate and the timing is right, if we can pass it into law. The existing one, as we know, has been in existence for forty-five years and with the new trends on the market all over the world, we need to change. A notable thing which I am so much happy to see in the new Bill is this -- In the existing Bill, which we are looking at now, prior approval is required for the payment of amortization of loans or depreciation of direct investment.
In the current Exchange Control Bill which is in place, we need an approval for the payment of amortization on loans and depreciation of direct investment. But in the new Bill, there is no restriction; we just need to submit the documents to the paying banks and the report is submitted to Bank of Ghana.
Again, in the current Bill which is in place, when one wants to purchase things on the capital market, there are no controls on the purchases. But the purchases of the foreign exchange -- to buy security requires the prior approval of the Bank of Ghana. The new Bill we are talking of now puts no restriction on one's way, and when we do the purchasing, we just need to submit the report to the bank and the paying bank will submit the report to the Bank of Ghana.
Again, to add more weight, as my hon. Colleague said, when businessmen are travelling they need not to take much money. But now with the liberalization of the market, we need to be ‘‘heavy” so
that we can go to Dubai to do our work. Therefore, there is the need for the amount of money needed to travel to be increased. The present amount is five thousand and the new Bill is seeking to make it ten thousand in order to give more room.
Indeed, when the new Bill is passed, a
lot of things will change. At the moment there are a whole lot of restrictions and we need approval from the Bank of Ghana if we want to transfer money into the country; if immigrants want to transfer money to the country, they first of all need the approval of the Bank of Ghana. In the new Bill, there is no restriction but the bank must just submit the report to the Bank of Ghana. And I think this will help us; it will open our market up and there will be free foreign transactions and things will be in order.
With these few words, I would want to
request my hon. Colleagues to see to it that this Bill is passed.
