Revisit operational guidelines - Forex Bureaus to BoG

The Ghana Association of Forex Bureaus is asking the Bank of Ghana (BoG) to review its regulatory guidelines.

Dr. Alex Akpabli, the Association's President, wants more flexibility in these rules. This change would help forex bureaus improve services and adopt technology. It would also make foreign exchange transactions more efficient and accessible.

“Our goal is to provide easy access to foreign currency,” Dr. Akpabli said. “We help parents send money abroad and support businesses needing foreign exchange.”

He emphasized that people should not have to rely solely on banks for foreign currency. Licensed forex bureaus should be readily available for this purpose. He urged regulators to rethink the current framework to support this important industry.

Concerns About Black Market Activities

Dr. Akpabli expressed worries about black market activities affecting licensed forex bureaus. Illegal transactions contribute to exchange rate instability and harm legitimate operations.

During a recent ceremony for new executives, he stressed the need for stricter regulations against the black market's influence. “The black market has been a long-standing issue,” he noted.

He added that if forex bureaus had more trading flexibility, they could reduce illegal traders' dominance significantly.

Dr. Akpabli pointed out that black-market exchanges distort currency value and destabilize the economy. Licensed bureaux struggle to compete with illegal traders who offer lower rates.

This situation drives individuals and businesses toward the black market, worsening exchange rate fluctuations.

The association believes that allowing forex bureaux to facilitate competitive currency exchanges could provide an alternative to the black market. This change would help stabilize currency exchange in Ghana.

Incorporating Digital Technology

Dr. Akpabli’s call for flexibility aligns with global trends in financial technology adoption. Many forex bureaus are integrating digital platforms for better customer experiences and secure transactions.

However, restrictive regulations limit their ability to fully utilize these advancements.

He noted a growing gap between official exchange rates and black market rates in recent years. The lack of sufficient legal foreign currency access pushes people toward illegal traders, creating instability in Ghana’s financial system.

To address these issues, the association urges the Bank of Ghana to introduce dynamic regulations for forex bureaux. These changes would help meet market demand and enhance competition while benefiting the economy.

With appropriate regulatory adjustments, they believe the sector can become a stronger, tech-driven part of Ghana’s financial landscape.