Enforce regulations on illegal foreign exchange activity – Prof. Quartey to BoG

BoG cautions public against illegal foreign exchange activity

Don’t price, advertise or trade in foreign currency without BoG authorization – Public cautioned

Economist, Professor Peter Quartey, has pleaded with the Bank of Ghana to crack down on those who engage in illegal foreign exchange trading, particularly with US dollars.

He claims that the illegal activity has made the forex market volatile.

Speaking at the Cedi Summit in Accra on June 27, the Director of Research at the Institute of Statistical, Social and Economic Research (ISSER), urged the central bank to take urgent action to address the menace.

“It’s only in Ghana and a few other countries that you can walk to a corner and get foreign exchange without any identification. You cannot just do that in other places. In our case, it is free for all. People just fly in or come across the borders to get forex and go out with it. These days they even operate on okada and would come and supply forex to you once you call them. I don’t think that is the way to go,” Citi Business News quoted him.

“The informal forex market is driving some of the volatility we are seeing in the sector and I think it’s about time the Bank of Ghana enforces its regulations regarding the informal forex market,” Professor Quartey added.

Before the call, the Bank of Ghana, in April this year cautioned the public against engaging in illegal foreign exchange activity also known as black market transactions.

It further called on companies, institutions and individuals to desist from pricing, advertising, receipting or making payments for goods and services in foreign currency without a license issued by the Bank of Ghana

The bank, in a statement, reminded the public that engaging in foreign exchange business without authorization could result in a fine of up to seven hundred (700) penalty units or a term of imprisonment of not more than eighteen (18) months, or both.