As Ghana’s local currency, the cedi, comes under renewed pressure, banking consultant Dr Richmond Atuahene has defended the Bank of Ghana’s (BoG) latest regulatory actions in the foreign exchange and remittance markets.
Dr Atuahene dismissed suggestions that the measures reflected a panic reaction, stressing that they were part of a deliberate strategy to protect the economy.
He explained that remittance inflows play a vital role in stabilising the cedi, and as such, strict enforcement against non-compliant operators was necessary.
“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 GH¢17 or GH¢16, but today they have managed to bring it to around GH¢12. People think it is panic, but it is not. Every country, especially in the developing world or emerging economies where remittances play a key role in their balance of payment, must take such measures,” Dr Atuahene said.
His comments follow the BoG’s decision to suspend the foreign exchange trading licence of United Bank for Africa (UBA Ghana) for one month, effective September 18.
The central bank cited multiple breaches of forex market rules, revealing that UBA Ghana had engaged in unauthorised remittance transactions with Payment Service Providers (PSPs) such as Halges Financial Technologies Limited, Cellulant Limited, and Flutterwave Inc.
These PSPs were acting on behalf of Money Transfer Operators (MTOs) including Top Connect, Send App, TapTap Send, Remit Choice, and Afriex.
The BoG has since issued a stern warning to all forex market participants to comply with regulations and guidelines or risk facing similar sanctions.
Dr Atuahene stressed that remittances remain a lifeline for Ghana’s economy, making regulatory oversight even more critical.
He urged market operators to respect the rules, noting that laxity could undermine exchange rate stability and worsen the country’s economic challenges.
