Bank of Ghana has issued a communique suspending First National Bank and Fidelity Bank for breaches amounting to 1000 penalty points in the inter bank forex rates.
The breaches stated were section 3.4, 3.5 and 3.9 of the Ghana Interbank Forex Market Trading Rules. The punishment outlined for both banks is suspension of licenses for forex trading between June 29, 2023 to July 28, 2023, a period of 30 days.
Indicative Quotes
“Trade Reporting on Platforms Participation in FX Auctions LFXDs are required to update indicative quotes for buying and selling US dollars at regular intervals, on the Reuters and Bloomberg information systems.
“Indicative quotes shall be updated at intervals of no more than 30 minutes. (This will show the price at which a market-maker is prepared to buy and sell at the minimum traded lots).
“All interbank FX trades must be booked on the Reuters platform and appropriately confirmed within five (5) minutes after the trade is concluded. These trades must also be reported in the daily FX report submitted to the Bank of Ghana.”
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3.9 Fixing of the Official Exchange Rate
“The Bank of Ghana shall publish the Ghana Cedi reference rate with respect to the US dollar on the Bank of Ghana website by 16:30 hours GMT daily except on holidays.”
“The reference rate shall be computed using the weighted average exchange rate of all eligible US dollar transactions that are reported to the Bank of Ghana by the cut-off time of 15:30 hours GMT.”
“The Bid and Offer reference rates are calculated by taking a +/- 0.05% bid/ask spread around the weighted average exchange rate. The reference rate will also be published on Reuters and Bloomberg by 16.30 hours GMT” – these were the breaches by both banks.
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The release which was shared on social media on Thursday, June 29, 2023 warned the public against trading with these banks in terms of forex trading.
The release signed by Ms. Sandra Thompson, the Secretary of the Bank of Ghana warned Money Transfer Officers, forex traders, forex bureaus, forex marketers and forex brokers to stick to the forex market regulations.
