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04.06.2019 Business & Finance

BoG Vows To Whip Harder Without Fear, Favour

By Clement Akoloh
Dr, Ernest Addison, Governor of the Bank of GhanaDr, Ernest Addison, Governor of the Bank of Ghana

The Bank of Ghana (BoG) under its Governor, Dr. Ernest Addison has vowed to crack the whip against any financial whose actions may distabilise the sector.

The Bank has therefore served notice it will not be hesitant to sanction any market participant whose action contravene Ghana’s Interbank FX Market Conduct Rules.

The Bank gave the warning in a press release it issued on Monday, June 03, 2019 after it fined Barclays Bank of Ghana GH¢4,579,256.36 for making frivolous quotes on Ghana’s Interbank Foreign Exchange Market.

According to the release, this action by the Barclays Bank was in breach of the Ghana Interbank Forex Market Conduct Rules.

The release by the BoG headed by Dr. Ernest Addison emphasized that it is committed to ensuring sanity, transparency and promoting best practices that serve to develop and deepen the FX market in Ghana.

The Bank just recently revoked the licenses of some 347 microfinance companies in the country at the back of a banking sector reform which saw a number of indigenous Ghanaian banks going under for mismanagement of depositors’ funds while others were merged for lack of the right capital to operate in the sector.

Therefore, the action taken by the Central Bank to fine the Barclays for breaching the rules does not come as a surprise to many.

Below is the full statement:

NOTICE OF THE FINING OF BARCLAYS BANK GHANA LIMITED FOR MAKING FRIVOLOUS QUOTES ON THE GHANA INTERBANK FOREIGN EXCHANGE (FX) MARKET

The Bank of Ghana has fined the Barclays Bank of Ghana an amount of GH¢4,579,256.36 for making frivolous quotes on Ghana’s Interbank Foreign Exchange Market. This action is in breach of the Ghana Interbank Forex Market Conduct Rules.

The Bank of Ghana is committed to ensuring sanity, transparency and promoting best practices that serve to develop and deepen the FX market in Ghana.

In pursuit of the above goals, the Bank of Ghana will not hesitate to sanction any market participant whose actions contravene Ghana’s Interbank FX Market Conduct Rules.

ISSUED BY BANK OF GHANA

June 3, 2019

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