In response to the Bank of Ghana’s (BoG) recent suspension of their Foreign Exchange (FX) operations, Fidelity Bank and First National Bank (FNB) have reassured the public of their commitment to resolving the underlying problems and minimizing any disruptions to their customers’ financial services.
This follows the central bank’s enforcement of compliance in the FX market, which involved levying penalties and suspending licenses for violations of pertinent regulations.
The duo were penalised with a combined 1,000 penalty points each for violating sections 3.4, 3.5 and 3.9 of the Ghana Interbank Forex Market Conduct rules, and have had their respective forex licences suspended from June 29, 2023 to July 28, 2023.
Fidelity Bank, in a statement, reiterated that the regulator’s action does not in any way affect the bank’s normal banking operations, adding: “While we address the reporting concerns raised by our regulator, we have in the interim reached agreements with our partner banks to aid in seamless completion of foreign exchange transactions on behalf of Fidelity Bank.”
“We apologise for any inconvenience this announcement may have caused, and we reassure all our valued customers that we are actively engaging the Bank of Ghana to resolve the issue as soon as possible.
“All branches, agent points and digital platforms continue to provide our customers with the full range of financial services as usual. As a bank, we strive to maintain the highest levels of operational compliance across all our business activities, and we are fully committed to engaging the Bank of Ghana to resolve this situation.”
Fidelity Bank Statement
More so, FNB in a statement disclosed that due to an ongoing engagement with the regulator, it is unable to initiate and complete forex trading for the next 30 days, stating that: “This temporary hold will allow us to complete our engagement process with the Bank of Ghana (BoG) and make the necessary adjustments to our forex trading business in line with the regulator’s policies.”
“To minimise any possible disruptions, we have made alternative arrangements with partner-banks to initiate and complete forex trade deals for and on behalf of First National Bank Ghana and its clients, should the need arise.
“As we cooperate with the BoG throughout this process, be assured that your business relationship and all other banking relationships with First National Bank will not be impacted.”
First National Bank Statement
Market Analysts Back BoG’s Actions
According to market analysts who weighed in on this development, the move will foster greater compliance and discipline among market participants, safeguarding the interests of both investors and the broader economy.
The warning message of the Central Bank, they said, serves as a reminder for all forex market participants including banks, forex bureaus, forex brokers and money transfer operators (MTOs) to strictly abide by applicable regulations and guidelines, promoting a fair and transparent trading environment that will further deepen the relationship between investors and the broader economy.
The Central Bank yesterday disclosed the punitive measures in a statement. The regulator said: “The Bank of Ghana has fined Fidelity Bank Ghana Limited and First National Bank Ghana Limited a combined 1,000 penalty points each for breaching sections 3.4, 3.5 and 3.9 of the Ghana Interbank Forex Market Conduct rules.”
These infractions underscored the banks’ disregard for crucial regulations that govern the forex market. Section 3.4 of the guidelines specifically address Indicative Quotes, which mandate Licenced Foreign Exchange Dealers (LFXDs) operating in the interbank forex market (excluding the BoG) to regularly update their indicative quotes for buying and selling US dollars on the Reuters and Bloomberg information systems.
Read also: First National Bank Ghana Halts Foreign Exchange Transactions In Reaction to BoG’s Suspension
