GTBank and First Bank, have been suspended from trading foreign exchange (FX) in Ghana, effective from Monday, March 18, 2024.
The Bank of Ghana (BoG) disclosed the suspension today, saying it would last for a month.
The apex bank outlined that the suspended licences could be reinstated after the suspension period, contingent on GTB and FBNBank’s implementation of effective controls.
It’s expected that these controls must ensure rigorous adherence to foreign exchange market regulations, satisfying the central bank’s requirements for compliance.
Why Ghanaian authorities suspended GTBank and First Bank
Fintech Telex understands that the suspension of GTBank, and First Bank in Ghana was in response to various breaches of foreign exchange market regulations, including incidents of fraudulent documentation within their foreign exchange operations.
The Ghanaian apex bank held that this measure is in strict accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723), underscoring BoG’s commitment to maintaining the integrity and stability of the foreign exchange market.
Any impact?
The suspension of Guaranty Trust Bank (GTBank) and First Bank of Nigeria (FBNBank) from foreign exchange (FX) operations in Ghana for one month is unlikely to have a major impact on most Ghanaians. Here’s a breakdown of how it might affect different groups:
- Individuals making occasional FX transactions: These individuals can easily use other banks or forex bureaus for their transactions.
- Businesses that rely heavily on FX: Businesses that import or export goods may experience some delays or inconveniences in settling their foreign exchange obligations. They may need to find alternative FX providers or negotiate with their current providers for temporary solutions.
- The overall FX market: The suspension could lead to a temporary reduction in FX liquidity in Ghana, but this is likely to be mitigated by other banks stepping up their FX trading activities.
The BoG has, however, assured Ghanaians that they are working to ensure a smooth operation of the FX market during the suspension period. They’ve also cautioned other financial institutions to adhere to foreign exchange regulations.
It’s important to note that this suspension is a regulatory measure by the BoG to address non-compliance with foreign exchange rules. It’s a signal that the BoG is committed to maintaining stability in the Ghanaian foreign exchange market.
