BoG warns FX brokers against dealing with corporate entities, lending FX to other authorised market participants
The Central Bank has cautioned authorised foreign exchange (FX) brokerage firms against dealing directly with corporate entities in the country.
The apex bank has also warned FX brokers against borrowing or lending FX to other authorised market participants as well as holding or trading FX for its own account.
Failure to adhere to these rules, the BoG asserts, will result in the imposition of penalties and/or revocation of the authorisation of the involved FX broker.
A statement issued by the Central Bank on December 30, 2022, noted nine (9) foreign exchange brokers have received authorisation from the Bank of Ghana to operate on the Ghana Interbank FX market.
Trade in foreign exchange (FX) by the nine (9) brokers takes effect from January 1, 2023 to December 31, 2023.
The Central Bank named the nine (9) FX brokers as being: Black Star Brokerage, CSL Capital, Fenics MD, ICAP African Brokers Ltd, Obsidian Acherner, Regulus, Sarpong Capital, Savvy Securities and Terika Financial Services Ltd.
According to the BoG, the move is to ensure sanity in the FX market which came under severe pressure in 2022.
The Bank of Ghana in the statement noted that, it reserves the right to delist any authorised FX broker for non-performance or non-compliance with the FX Act and the Interbank FX Market Conduct rules.
The apex bank further noted that an FX broker, “shall not deal directly with a corporate entity; it shall not also buy or sell foreign exchange for its own account nor hold, borrow or lend foreign exchange to an authorised market participant”.
Additionally, the BoG stipulates that FX brokers must have a robust system in place with the required safeguards againstcy nd other forms of internet or other technology threats in line with the Bank of Ghana’s Cyber Security Directives;
