Due to “fraudulent documentation” in their forex operations, Guaranty Trust Bank and First Bank, two Nigerian-owned banks operating in the neighboring West African country, have had their foreign currency trading licenses halted by the Bank of Ghana.
The Ghanaian regulator said in a statement on Monday that the suspension will take effect on March 18, 2024, and last for one month.
“Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), effective 18th March 2024, for a period of one (1) month, in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723),” read the statement.
“This is a result of various breaches of the foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations which have come to the attention of Bank of Ghana.
“The licence will be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that they have put in place effective controls to ensure strict adherence to the foreign exchange market regulations.”
The watchdog issued a warning to participants in the foreign exchange market to rigorously abide by the rules and regulations that apply to the FX market.
4,173 Bureaux De Change Operators had their licenses withdrawn by the Central Bank of Nigeria (CBN) on Friday. The CBN blamed the affected institutions for not adhering to regulatory requirements.
The measure is anticipated to stop profiteering, arbitrage, and racketeering as the value of the naira falls to an all-time low versus the dollar, from over $/700 in May of last year to over $/1500 currently.
