BoG vows to shutdown forex bureaus trading illegally

BoG vows to shutdown forex bureaus trading illegally #BoG #vows #shutdown #forex #bureaus #trading #illegally Welcome to GistFeed

Head of Financial Stability at BoG, Dr. Joseph France Head of Financial Stability at BoG, Dr. Joseph France

The Bank of Ghana has included illegal forex bureaus trading as part of the reasons for Cedi’s poor performance against major trading currencies.

According to the central bank, some forex companies are flouting the law governing forex operations in the country.

A report by citibusinessnews.com, stated that some forex bureaus in Accra are selling a dollar for GH¢9.98 whilst others are selling it for GH¢10.10.

This practice, according to BoG, distorts the forex market and only fuels the free fall of the cedi.

Meanwhile, a leading member of the New Patriotic Party, Gabby Asare Otchere-Darko, has also accused some forex traders of creating artificial shortages on the market to hike the prices of currencies they deal in.

In a tweet that was accompanied by a video, Otchere-Darko wrote, “This is what some foreign exchange traders in Accra are suspected to be doing. You suck up fx from other market players, which allows you to create artificial shortages in certain quarters and then hike up prices.”

Speaking in an interview with the above media house, the Head of Financial Stability at BoG, Dr. Joseph France, said such irregularities by forex bureaus have been brought to the central bank’s notice, hence, his outfit won’t hesitate to clamp down on activities of forex bureaus found culpable and operating illegally.

“Forex bureaus are governed by the Foreign Exchange Act (Act 723), but it has come to our notice that some of the forex bureaus are not compliant with these simple rules, so the Bank of Ghana wants to assure the public that we are after those recalcitrant ones. We will fish out all of them,” he said.

FNOQ

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