Online forex trading illegal, not regulated – BoG says
Online forex trading, the Bank of Ghana (BoG) asserts, is illegal and not regulated in the country.
According to the Central Bank, Section (3) of the Foreign Exchange Act, 2006 (Act 723) prohibits persons from trading in forex whether online or otherwise without a license from the Bank.
Adding that, licences issued particularly to Forex bureaux for foreign exchange transactions are meant solely for on-the-spot selling and buying of foreign currencies.
The assertion by the Central Bank is contained in its occasional financial literacy education document, informing the general public on the activities of forex bureaux in the country.
On-the-spot buying and selling of foreign currency refers to the purchase or sale of foreign currencies at the prevailing exchange rate at the time of sale or purchase of a foreign currency.
Additionally, the Central Bank asserts that forex bureaux are prohibited from engaging in forex forward exchange rate trading.
Forex forward or forward exchange rate trading, refers to an exchange rate agreed on by both the seller and buyer of the foreign currency with the transaction between the two scheduled for a later date.
“It is unlawful for you to deposit Ghana Cedis with a foreign exchange bureau at an agreed rate and collect the foreign currency equivalent at a later date,” stated the Bank.
The BoG also advised the public against dealing with ‘black market’ operators noting that individuals are likely to trade in fake currency, be drawn into money laundering and terrorist financing or attacked by armed robbers.
Read details of document below: