Three months after the Bank of Ghana’s directive on biometric verification for foreign currency exchange at forex bureaux, customers continue to transact business without providing their Ghana Cards or undergoing verification. The directive, which was supposed to take effect on August 1, 2024, required biometric verification through a Ghana Card or passport for foreign nationals. However, investigations by The High Street Journal reveal that the policy is not being enforced.
Forex bureaux initially protested the directive, citing concerns that it would drive customers away. During the first week of its supposed implementation, there was a noticeable decline in transaction volumes, which the bureaux attributed to the new requirements. Despite this, three months later, business has returned to normal without compliance with the directive.
Sources close to the Central Bank indicate that the Ghana Association of Forex Bureaux has yet to sign a document that would compel members to comply. The association, the sources indicate, requested more time from the Bank of Ghana to fully understand the technical language of the directive. Until the document is signed, the directive remains unenforced.
Regular customers of the forex bureaux who interacted with The High Street Journal expressed relief that the directive is not in force. Many feel uncomfortable with the idea of providing biometric details for every transaction, fearing it could infringe on their financial privacy. There are also concerns that strict enforcement could push people to the black market for currency exchange.
Meanwhile, the cedi continues to lose value despite improvements in Ghana’s Gross International Reserves. On the interbank market, the cedi traded around GH¢15.95 to GH¢15.99 per US dollar on Tuesday, with expectations that it could slip further to GH¢16. In forex bureaux, the dollar is selling in the GH¢16.40 to GH¢16.60 range.
To address the demand for foreign currency, the Bank of Ghana plans to sell $120 million to Bulk Oil Distribution Companies (BDCs) in the fourth quarter of 2024, the same amount it allocated in previous quarters. However, market analysts are uncertain whether this will stabilize the cedi amid rising dollar demand.
