BoG clampdown on FX and remittance markets not Panic-driven, Says Dr. Atuahene
Banking consultant, Dr. Richmond Atuahene, has dismissed suggestions that the Bank of Ghana’s (BoG) recent clampdown on foreign-exchange and remittance operators was a panic response to renewed pressure on the local currency.
His comments follow concerns raised by some market watchers after the cedi, which had recorded months of relative stability, began to show signs of weakness against major trading currencies.
Last week, the Central Bank suspended the remittance partnerships of five money transfer operators — Taptap Send, Top Connect, Remit Choice, Send App and Afriex — for a month over regulatory breaches. The BoG also imposed a one-month suspension on the foreign-exchange trading licence of United Bank for Africa (UBA) Ghana.
According to Dr. Atuahene, remittance inflows remain a critical source of foreign exchange for the economy, making strict regulatory enforcement essential to safeguarding the integrity of the financial system. He argued that the BoG’s actions were consistent with its mandate and not indicative of panic.
“It is not a panic reaction. Last year when they [BoG] suspended CBG [Consolidated Bank Ghana] and Taptap Send, it wasn’t a panic reaction. At that time a dollar was about GHȼ17 or GHȼ16 but today they have managed it and we are talking about GHȼ12 [to a dollar] and people think it is a panic. No. Every country, especially in the developing world or emerging economies where remittances play a key part of their balance of payments, it is not panicking,” Dr. Atuahene told journalists.
He added that sanctions are a necessary part of the regulatory framework.
“Those who say they [BoG] are panicking, I don’t know what they mean by panicking. Last year, the previous government did the same thing. Was it panicking? Once we license you, there are sanctions for non-compliance of the issues, so I don’t subscribe to the panic issue,” he stressed.
The BoG has meanwhile reiterated its caution to all players in the foreign-exchange and remittance markets to strictly adhere to existing regulations and guidelines.
