The Ghana Association of Forex Bureaus is appealing to the Bank of Ghana (BoG) to review certain existing regulatory measures that oversee their operations.

0

Dr. Alex Akpabli, who serves as the Association’s President, believes the central bank needs to adopt a more adaptable approach to regulation, allowing forex bureaux to modernize their systems, embrace digital innovations, and deliver quicker, more accessible foreign exchange services.

1

“We were established to provide feasible access to foreign currency for the public and businesses. Whether it’s helping parents send money to their children abroad or supporting individuals and businesses who need foreign exchange, our role is vital.”

2

“There should not be a situation where people are forced to go to the banks when they need foreign currency. It should be readily available through licensed forex bureaus. Therefore, we urge the regulators to reconsider the existing framework to help grow this vital industry," Dr. Akpabli said.

3

Black Market Concerns

4

Dr. Akpabli also voiced his worry over how black market dealings continue to disrupt the operations of recognized forex bureaus.

5

He noted that unauthorized currency trading fuels exchange rate instability and threatens the viability of licensed operators, causing ripple effects across the broader economy.

6

Speaking at the inauguration of the Association's newly elected executives, Dr. Akpabli stressed the urgent need for tighter regulatory enforcement to stem the growing influence of illicit forex activities.

7

“The black market has been a persistent challenge. It has existed long before we came into operation, and its presence is deeply embedded in the market. It’s not an easy problem to tackle. However, if we are allowed more flexibility to trade among ourselves and gain better access to foreign exchange, we can significantly reduce the dominance of these illegal traders,” he added.

8

He further emphasized that the unchecked presence of unregulated currency traders leads to economic distortions by misrepresenting the real value of the local currency.

9

"Licensed forex bureaux face challenges as they are unable to compete with illegal traders who operate outside the law and offer rates that often undercut the official market. As a result, individuals and businesses seeking foreign currency may be driven to the black market, further exacerbating exchange rate fluctuations", he stressed.

10

The Association argued that granting licensed operators the space to provide more open, competitive, and trustworthy currency exchange services would offer a credible alternative to the black market, thereby promoting exchange rate stability.

11

Embracing Technological Innovation

12

Dr. Akpabli’s appeal for a more relaxed regulatory environment aligns with the global shift toward digital transformation in the financial sector.

13

Several forex bureaux have already begun integrating digital tools to improve customer service, deliver real-time rates, and enhance the security of transactions. However, strict regulations continue to restrict their ability to fully embrace these tools.

14

He expressed concern over the growing disparity between the official and parallel market rates, noting that the gap has expanded considerably in recent times.

15

"The lack of access to sufficient foreign currency through legal channels is pushing more individuals and businesses to rely on illegal traders, perpetuating a cycle of instability that is detrimental to the country’s financial system", he explained.

16

To address these issues, the Association is calling on the Bank of Ghana to consider implementing more flexible and responsive regulations that would allow forex bureaux to better respond to market needs, stimulate healthy competition, and contribute meaningfully to national economic growth.

17

The Association maintains that with appropriate regulatory reforms, the sector could grow into a more innovative, resilient, and integral component of Ghana’s financial system.

18