Bank Of Ghana Suspends FX Licences Of GTB, First Bank For One Month

The Bank of Ghana has suspended the foreign exchange trading licences of two Nigerian-owned banks operating in the neighbouring West African nation — Guaranty Trust Bank and First Bank — over “fraudulent documentation” in their forex operations.

In a statement on Monday, the Ghanaian regulator said the suspension will become effective from March 18, 2024, 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),” the statement partly read.

“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 regulator cautioned foreign exchange market players to adhere strictly to the applicable forex market regulations and guidelines.

Last Friday, the Central Bank of Nigeria (CBN) revoked the licences of 4,173 Bureaux De Change Operators, accusing the affected institutions of failing to observe regulatory provisions.

The move is expected to curb arbitrage, racketeering and profiteering as the naira suffers an all-time low against the dollar, from about $/700 last May to over $/1500 at the moment.