BoG urged to consistently fulfill regulatory mandate to address abuses in the FX market

The Director of Communications of the New Patriotic Party (NPP) Richard Ahiagbah, has urged the Bank of Ghana (BoG) to consistently fulfill its regulatory mandate to address the abuses in the Forex Bureau market that directly impact the performance of the Cedi.

He explained that currencies in the Sub-Saharan Africa (SSA) Region, including the Cedi, have been struggling due to the appreciation of the Dollar in the first quarter of 2024.

He commended the Ministry of Finance for effectively managing the impact of the appreciating Dollar on the Cedi so far.

"The Bank of Ghana must persistently discharge its regulatory mandate to deal with the flagrant abuses in the FX market that contribute directly to the Cedi's performance. We are destined to overcome!" Ahiagbah wrote on his X platform.

Meanwhile, the Central Bank has stated that it is fully committed to maintaining stability in the exchange rate for the Cedi.

BoG Governor, Dr. Ernest Addison mentioned that the apex bank has sufficient foreign exchange reserves to support the market and advised economic agents to refrain from engaging in speculative purchases to avoid economic losses when corrections are made.

"The Bank of Ghana is implementing measures to enhance market conduct and bring order to the foreign exchange market. They have collaborated with the Ghana Association of Banks to simplify documentation requirements for foreign payments to reduce the need for informal markets.

"To address the high demand for foreign exchange, the Bank has directly met the foreign exchange needs of some corporate institutions in recent weeks, resulting in decreased demand from commercial banks," the BoG Governor said at a press briefing in Accra on May 27.

Dr. Ernest Addison stated that a task force will also work to eliminate illegal operators from the foreign exchange market.

“The Bank is fully aware of the operations of illegal operators in the foreign exchange market and is working with the Financial Intelligence Centre to sanitise the foreign exchange market. The Foreign Exchange Bureaux Monitoring will be stepped up to ensure compliance with their regulatory framework,” he said.

“In line with this, all foreign exchange bureaus advertising rates outside their premises and on social media platforms must immediately desist from the practice. The Bank has set up a task force to monitor all the foreign exchange bureaux to ensure compliance,” Dr Addison stressed.

Currencies in the SSA Region have been faltering because the DOLLAR has appreciated much of the first quarter of 2024. The Ministry of Finance deserves commendations for containing the impact of an appreciating DOLLAR on the cedi thus far.

The Bank of Ghana must persistently…

— Richard Ahiagbah (@RAahiagbah) May 27, 2024