Bank of Ghana's Forex Bureaux policy is likely to encourage black market activities - Economist

An economist, Dr Patrick Assuming, believes that the implementation of the Bank of Ghana's Forex Bureaux policy which took place Thursday [August 1, 2024] is likely to encourage more black market activities.

The Bank of Ghana announced an update to its foreign exchange trading system, introducing a centralised platform aimed at ensuring the integrity and development of the financial system. 

Effective August 1, 2024, all licensed Foreign Exchange Bureaux in Ghana will be required to verify customer identities using Ghana Cards or Passports before conducting any transactions.

This new platform is a major milestone in the Bank of Ghana’s efforts to promote safe and sound operations within the foreign exchange market. 

The initiative is designed to improve oversight for Directors and Management of the bureaux, and enhance the Bank’s ability to monitor and supervise their operations in compliance with the Foreign Exchange Act, 2006 (Act 723), the Anti-Money Laundering Act, (Act 1044), and other relevant regulations.

Speaking on Accra-based 3FM Thursday afternoon, August 1, 2024, Dr Assuming noted that even though the policy is aimed at addressing the 'dollarisation' of the Ghanaian economy, it may also offer a good boost to the black market operators in the Forex market.

His reason is that people might find the black market as an alternative to the formalised forex sector, noting that many business people prefer the rates of the black markets to that of the licensed markets. 

He called for more measures to tighten the process of buying dollars in the country, pointing out that "we need more regulatory measures. Don't make it a norm that people can easily go on the market and buy dollars."