Adnan Adams Mohammed
In effort to control foreign exchange market collusion among players influencing the untamed Cedi depreciation, the Bank of Ghana (BoG) has launched a centralised foreign exchange trading platform.
This is to ensure that any activity of buying and selling of foreign currencie by all licensed Foreign Currency Exchange Bureaus will be done on the platform to improve regulatory compliance and supervision.
The operation of the platform took effect on August 1, 2024, as contained in a statement signed by the Secretary (BoG). The statement indicated that, the initiative marks a milestone in the Bank’s efforts to ensure safe and sound operations of the foreign exchange business.
“The platform is expected to 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”, the statement said.
The Central Bank has also mandated the use of the Ghana Card for all foreign currency transactions.
The government recently lamented about how deliberate speculation about the forex exchange rate were influencing the depreciation of the local currency against the US dollar.
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 according to the statement 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 has been reminded that the buying and selling of foreign currencies shall only be conducted with Bank of Ghana licensed foreign currencies dealers.
