The Bank of Ghana has taken decisive action by suspending the foreign exchange trading licences of two Nigerian-owned banks, Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), citing “fraudulent documentation” in their forex operations.

In a statement issued on Monday, the Ghanaian regulator announced that the suspension would come into effect from March 18, 2024, and would last for one month, in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723).

“Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBNBank Ghana Limited (FBN), effective 18th March 2024, for one (1) month, in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723),” the statement partly read.

“This is a result of various breaches of the foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations which have come to the attention of the Bank of Ghana.

“The licence will be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that they have put in place effective controls to ensure strict adherence to the foreign exchange market regulations.”

The regulator issued a stern warning to all foreign exchange market players, stressing the importance of adhering strictly to applicable forex market regulations and guidelines to maintain the integrity of the financial system.

This action by the Bank of Ghana comes shortly after the Central Bank of Nigeria (CBN) last Friday, revoked the licences of 4,173 Bureaux De Change Operators for failing to comply with regulatory provisions.

This move aims to curb arbitrage, racketeering, and profiteering amid the naira’s continued depreciation against the dollar, from about $/700 last May to over $/1500 at the moment.