Bank of Ghana Introduces Centralized Digital Platform to Streamline Forex Transactions and Enhance Regulation

The Bank of Ghana (BoG) has launched a centralized online foreign exchange trading platform, requiring all licensed Foreign Exchange Bureaux to utilize it for buying and selling foreign currencies. 

This platform which was effective August 1, 2024, aims to enhance secure and efficient operations in the forex market, improve oversight for bureau directors and management, and bolster the BoG’s monitoring and supervision in line with the Foreign Exchange Act, 2006 (Act 723), the Anti-Money Laundering Act (Act 1044), and other relevant regulations.

This initiative follows a national security operation that began on July 26, 2024, leading to the arrest of 13 individuals on July 31, 2024, for illegal foreign currency exchange. The operation seeks to curb the cedi’s depreciation and regulate forex trading by targeting illegal activities.

Recall that in May 2024, the BoG established a task force to ensure compliance among foreign exchange bureaus with regulatory standards. The task force’s objectives include curbing illegal operations, promoting market transparency, reducing the appeal of unofficial exchange channels, and fostering a more regulated forex market.

The new platform will be integrated with the national payment platform to facilitate electronic payments and the receipt of Ghana Cedis for forex transactions. All transactions at Foreign Exchange Bureaux will require electronic receipts. Furthermore, the system will integrate with the National Identification System, necessitating individuals to provide a Ghana Card or Passport (for foreigners) and undergo biometric verification for forex transactions. The BoG emphasizes that all currency exchanges must be conducted through licensed dealers.

Source: Techpoint