Executive Director of Revenue Mobilisation Africa (RMA) cautions that the stability of the Ghanaian Cedi against major international currencies, particularly the US Dollar, will remain vulnerable unless the Bank of Ghana (BoG) decisively addresses the issue of illegal foreign exchange (forex) traders operating on the black market.
Geoferry Kabutey Ocansey, Executive Director of RMA, contended that while the central bank is implementing measures to ensure the Cedi’s stability, any gains achieved will likely be transient due to the unlicensed activities of black market operators.
His comments follow the Bank of Ghana’s announcement of its plan to begin Foreign Exchange (FX) sales under its Domestic Gold Purchase Programme starting in October 2025, with an anticipated release of up to US$1.15 billion into the market. The central bank stated that this FX will be sold on a spot basis through twice-weekly competitive auctions open to all licensed banks.
Mr. Ocansey acknowledged that the central bank’s decision to inject liquidity through FX sales is a welcome initiative. However, he raised critical concerns about its long-term viability:
“The fundamental question is: For how long can the Bank of Ghana sustain this intervention? Is it a truly sustainable solution? It is analogous to a parent who applies medicine to a child’s persistent wound only once and hopes for a full recovery, when in reality, consistent daily application is required until the infection is cleared. Currently, individuals are engaging in unlicensed forex trade in areas like Osu, Tudu, and various other locations. These black-market players, not the licensed banking institutions, are effectively controlling the Dollar market.”
He stressed that the Bank of Ghana is legally mandated to enforce the law against these unauthorized operators. “These activities are unambiguously unlawful, yet the BoG appears to be observing them with inaction,” he noted.
Mr. Ocansey further stated that the unregulated nature of the black market facilitates unchecked cross-border currency trading, allowing individuals from neighboring countries to engage in trade without regulatory trace.
“The BoG must adopt a proactive stance. They need to locate these areas and immediately clamp down on the operators involved in this illegal practice. Furthermore, the problem is compounded by individuals who are hoarding the Dollar. Without the strict and unwavering enforcement of existing laws and regulations, the Cedi will inevitably remain susceptible to instability.”
By: Rainbowradioonline.com/Ghana
