Fidelity & FNB suspended from Ghana’s forex market.

The Bank of Ghana has fined Fidelity Bank and First National Bank for what the Central Bank says in a public notice is a breach of Sections 3.4, 3.5 and 3.9 of the Ghana Interbank Forex Market Conduct rules.

The forex licenses of the two banks have been suspended for one month, effective June 29, 2023. Fidelity and FNB can, therefore, not engage in forex transactions for the suspension period.

WoezorTV’s Business Analyst explains that banks and other companies are licensed to buy and sell foreign currency among themselves on a common platform.

“These two banks cannot go on that platform to buy or sell forex for one month. So, if they do not have enough foreign currency, they may be unable to supply customers who come to them for foreign currency.”

Because the banks make much money trading foreign currency on the Interbank platform, FNB and Fidelity will lose out during suspension.

Meanwhile, the Bank of Ghana has cautioned players in the forex market, including banks, forex bureaus, forex brokers and money transfer operators, “to adhere strictly to the applicable forex market regulations and guidelines.”