Bank of Ghana gains plaudit for enforcement of foreign exchange market regulations

The Bank of Ghana (BoG) has been commended for taking steps to implement foreign exchange market (FX) regulations.

Director of Research at the Institute of Economic Affairs (IEA) Dr John Kwakye who gave the BoG a pat on the back said that the order to all licensed Foreign Exchange Bureaux to use the centralised foreign exchange  trading platform for the buying and selling of foreign currencies “is a good initiative worth commending.”

“I have long called for enforcement of all FX regulations to help stabilise the cedi,” he wrote on his X platform.

The central bank had directed all licensed Foreign Exchange Bureaux to use the platform effective August 1, 2024.

This initiative is in line with the objective of the central bank to ensure the integrity and development of the financial system, the Bank of Ghana said.

In a statement, the Bank described the initiative as a milestone in its efforts to ensure safe and sound operations of the foreign exchange business.

The platform will improve oversight for Directors and Management of bureaux and enhance the Bank’s monitoring and supervision of their operations in compliance with the Foreign Exchange Act, 2006 (Act 723) and the Anti-Money Laundering Act, (Act 1044), as amended, and other relevant notices and enactments.

To ensure full utilisation and realisation of the system’s objectives, the following must
be adhered to:
i. Trading of Foreign Currencies with Licensed Dealers Only: The buying and
selling of foreign currencies shall only be conducted at Bank of Ghana licensed
foreign currencies dealers, which include licensed Foreign Exchange Bureaux.

ii. Usage of the Platform: All Foreign Exchange Bureaux transactions shall be
conducted on the new trading platform.

iii. Issuance of Electronic Receipt: Foreign Exchange Bureaux are required to
issue electronic receipt to customers for all purchases and sales of foreign
currencies.

iv. Verification of Customer Identity: In line with Bank of Ghana’s Notice No.
BG/GOV/SEC/01 titled “Use of Ghana Card for All Financial Transactions”, all
persons seeking to buy or sell foreign currencies must provide a Ghana Card or
Passport (for Foreign Nationals) and undergo biometric verification.

“The platform has been integrated with the National Identification System to ensure all
purchases and sales of foreign currencies are performed by verified individuals.

“It will also be integrated with the national payment platform to support electronic payments and the receipt of Ghana Cedis for foreign currency transactions at bureaux.

“The public is reminded that the buying and selling of foreign currencies shall only be
conducted with Bank of Ghana licensed foreign currencies dealers,” a statement issued by the BoG said.