6 tips on how to trade legally in foreign currency per BoG guidelines

Bank Of Ghana HQ The Bank of Ghana Headquarters

Wed, 8 Jun 2022 Source: www.ghanaweb.com

The Bank of Ghana has issued a number of guidelines required in engaging in foreign exchange transactions.

Despite many businesses and individuals that still engage in the pricing, buying and advertising in foreign currency, the central bank has cautioned that only universal banks and foreign exchange bureaux were licensed institutions to engage in this activity.

As part of its financial literacy campaign, the Bank of Ghana said the “Black Market” foreign exchange operator does not have a valid license from the central bank to operate.

It cautioned that engaging in the business of buying and selling foreign currencies without a licence from Bank of Ghana is punishable upon summary conviction, by a fine of up to 700 penalty units or a prison term of not more than 18 months or both.

It however described as unlawful to price, advertise or demand payment for goods and services in foreign currency in Ghana.

“Always remember, the sole legal tender in Ghana is the Ghana Cedi and the Ghana pesewas. The proof of customer identification is a requirement which helps to reduce fraud, money laundering and terrorist financing risks among others,” the central bank stated.

Meanwhile, the Bank of Ghana has urged businesses and individuals to look out for these tips and guidelines before engaging with licensed or unlicensed forex exchange operators.

It added that the maximum value per transaction that may be carried out at a foreign exchange bureau is US$10,000.

1. Look out for a valid Bank of Ghana licence displayed in the premises of the foreign exchange bureau before transacting business with them.

2. You will be required to provide Identification Documents (ID) before conducting any transaction with a foreign exchange bureau. These include passport, driver’s licence, voter’s ID or the National ID card. If your Foreign Exchange Bureau does not require an ID from you, or does not retain a copy of your ID, report them to the Bank of Ghana. Note: The ECOWAS ID card (Ghana Card) will be the sole ID for financial transactions from 1st July 2022.

3. After transacting business with a licenced foreign exchange bureau, insist on your receipt, which bears the bureau’s name, amount purchased and traded rate. Be sure to keep your receipt for inspection by BOG or law enforcement if needed.

4. If you do business with a “black market” foreign exchange operator, you are likely to trade in fake currency, to be drawn into money laundering, terrorist financing or to be attacked by unscrupulous persons, including armed robbers. Avoid them!

5. Any person with foreign currency (resident or non-resident) who wishes to transact any business in Ghana should exchange their foreign currency for Ghana Cedis at any licensed foreign exchange bureau or universal bank.

6. The licence issued to foreign exchange bureaux by Bank of Ghana permits them to engage ONLY in on–the–spot selling and buying of foreign currencies. It is unlawful for you to deposit Ghana Cedis with a foreign exchange bureau at an agreed rate and collect the foreign currency equivalent at a later date.

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Source: www.ghanaweb.com
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