The Bank of Ghana (BoG) has taken a significant step toward ensuring transparency and stability in the Ghanaian foreign exchange market by releasing the list of authorized FX brokers for 2025.
This move complies with Section 3.13.1 of the Ghana Interbank Forex Market Conduct Rules, which requires prior approval for both local and international foreign exchange brokers operating within the Ghana Interbank Forex Market.
In a notice signed by Ms. Sandra Thompson, Secretary of the Bank of Ghana, the central bank announced that 15 brokers have been granted authorization to operate from January 1, 2025, to December 31, 2025. The selected brokers include notable names like IC Securities, SIC Brokerage, Serengeti Limited, and Crown Agents, among others. These firms are expected to play a crucial role in facilitating forex transactions in Ghana’s dynamic financial ecosystem.
The BoG’s announcement emphasizes the critical role of regulatory oversight in fostering trust within the financial sector. By carefully vetting and authorizing brokers, the central bank aims to ensure that market participants operate within a framework of accountability and transparency.
To safeguard the integrity of the interbank forex market, the Bank of Ghana has outlined a series of conditions that the authorized brokers must adhere to. Among these is the requirement to submit mid-day and end-of-day reports, detailing pricing and volumes of transactions. This practice ensures real-time monitoring, discouraging any market manipulation or irregularities.
Additionally, compliance with the Ghana Interbank Forex Market Conduct Rules is mandatory for all brokers. Non-compliance could result in severe penalties or the revocation of their operating licenses, signaling the BoG’s zero-tolerance approach to regulatory breaches. Brokers are also required to reapply for renewal of their authorization by the first working week of December each year, ensuring that only compliant entities remain active in the market.
Prohibition of Proprietary Trading
One of the notable stipulations is the prohibition of proprietary trading. Authorized brokers are strictly forbidden from trading forex for their own accounts or holding forex for other participants. This measure is designed to eliminate conflicts of interest and ensure brokers focus solely on their role as intermediaries. Moreover, brokers must maintain robust cybersecurity systems to guard against potential threats and uphold transparency in pricing, further reinforcing operational integrity.
Special rules apply to brokers engaged in cross-border payments and financial services. These entities must submit detailed daily reports, including pricing, transaction volumes, and sources of inflows, providing a comprehensive view of their operations. Their pricing must accurately reflect market dynamics and align with rates revealed by partner banks. To prevent undue concentration of influence, cross-border brokers are limited to engaging with a maximum of five partner banks for forex flow termination.
The BoG also requires any organizational changes, such as mergers or name modifications, to be promptly reported. This measure ensures that the central bank remains informed and can maintain oversight of market activities.
In cases of non-compliance, the Bank of Ghana reserves the right to delist brokers from the authorized list. This could result from breaches of the Foreign Exchange Act 2006 (Act 723), violations of the Interbank FX Market Conduct Rules, or failure to meet the Post Authorization Guidelines for Forex Brokers. By clearly defining these enforcement measures, the central bank underscores its commitment to upholding market integrity and protecting stakeholders.
This announcement highlights the BoG’s dedication to creating a robust regulatory environment for forex trading in Ghana. It reflects the growing importance of international transactions in the country’s economy and the need for stringent oversight to ensure that these activities contribute positively to economic growth. The emphasis on transparency, cybersecurity, and operational excellence is indicative of a forward-thinking approach that seeks to future-proof Ghana’s financial system.
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