Starting tomorrow, August 1, 2024, the Bank of Ghana (BoG) will implement a new directive requiring biometric verification for all forex transactions at licensed Foreign Exchange Bureaux. Customers must present either a Ghana Card or a passport to conduct any foreign exchange business, as per the new guidelines. This directive comes in conjunction with the launch of a centralized foreign exchange trading platform, a significant move by the BoG aimed at ensuring the integrity and safety of the forex market.
The new platform mandates that all forex transactions, including the buying and selling of foreign currencies, be conducted through the system. Additionally, forex bureaux are now required to issue electronic receipts for all transactions. This initiative aligns with the BoG’s objective to enhance oversight, improve monitoring, and ensure compliance with the Foreign Exchange Act, 2006 (Act 723), and the Anti-Money Laundering Act, (Act 1044), among other regulations.
This measure is designed to promote transparency and prevent money laundering. By integrating the platform with the National Identification System, the BoG ensures that only verified individuals can conduct transactions. The system also supports electronic payments and the receipt of Ghana Cedis for foreign currency transactions, further streamlining the process.
However, the lack of a public education campaign accompanying this new policy raises concerns. With just one day to adjust, customers and forex bureau operators alike may face challenges. There is a fear that the sudden implementation, combined with the requirement for biometric verification, could drive individuals—especially those dealing with large sums of money—towards the black market. This would not only undermine the initiative’s intent but also potentially exacerbate the depreciation of the cedi.
Market analysts and forex bureau operators express anxiety over the potential decline in business due to the new requirements. The BoG, however, maintains that the platform’s introduction is a critical step towards a more secure and regulated forex market, ultimately benefiting the economy.
As the new directive takes effect, the public and forex bureaux will need to quickly adapt to these changes. The success of this initiative will depend on its acceptance by the public and its ability to deter illegal forex activities. While the BoG’s intentions are clear, the challenge remains to ensure that these measures do not inadvertently push transactions underground, thereby fueling the very issues they seek to resolve.
