The Bank of Ghana (BoG) has suspended the foreign exchange (forex) licenses of two Nigerian-owned banks operating in the country: Guaranty Trust Bank (Ghana) Limited (GTB) and FBNBank Ghana Limited (First Bank). The suspension, effective March 18, 2024, for one month, comes amid accusations of “various breaches of the foreign exchange market regulations,” according to a statement from the BoG.
The BoG’s statement details the reason for the suspension as “incidents of fraudulent documentation within their foreign exchange operations.” However, the specific nature of the alleged fraudulent activities remains unclear.
The suspension prohibits GTB and First Bank from conducting any foreign exchange transactions in Ghana for the duration of the one-month penalty. This could significantly impact their operations, potentially leading to lost revenue and hindering their ability to serve customers who rely on foreign exchange services.
Reactions:
- GTB: The bank, in a statement, acknowledged the suspension and stated that it is “cooperating fully with the Bank of Ghana to ensure a swift resolution to this matter.”
- First Bank: No official statement from First Bank was readily available at the time of this report.
- Analysts: Financial analysts expressed concern about the potential wider implications of the suspension. Some worried it could damage the reputation of Nigerian banks operating in other West African nations. Others highlighted the importance of a thorough investigation and swift resolution to maintain confidence in the Ghanaian financial system.
This is not the first time the BoG has taken action against foreign-owned banks operating in the country. In 2018, the central bank revoked the licenses of two other Nigerian banks, citing financial irregularities.
The one-month suspension is intended to provide the BoG with time to investigate the alleged forex market breaches further. The outcome of the investigation will determine whether any further action will be taken against the banks, such as potential fines or even the revocation of their licenses.