Forex Bureau Operators Ask Central Bank For Assistance

Accra, July 9 Forex bureaux operators today called on the Bank of Ghana (BOG) to initiate moves aimed at developing and strengthening the non- banking financial institutions rather than keeping them in a closed circuit. They urged the central bank to come out with concrete proposals on how best to develop the forex bureau industry in a way that together with the BOG they could mobilise funds for the country's development. These came out during a survey by the GNA of some forex bureaux in the city centre following a recent regulation by the BOG to them to desist from engaging in unauthorised banking operations. "The forex bureaux have been in existence for sometime now. It is for the BOG to collaborate with them in finding ways of developing new product ideas as well as developing the forex bureaux themselves into stronger entities, perhaps such as banks to reduce some load off the traditional banking system". Mr J. Ade Coker, Chairman of the Association of Forex Bureaux Operators told the GNA in an interview that some of the "malpractices" the BOG claims some forex bureau operators are engaged in can be developed for the benefit of the entire financial sector. He said the traditional banks need some form of competition which the non-bank financial sector can offer, thus making them more responsive and alive to the changing scenes in the banking industry. Mr Coker said: "it is impossible for some of these practices to go on if the persons involved are not directors or partners in the companies they may be working with. Besides it is risky". Some of the bureaux said there might be operators engaged in the malpractices outlined by the central bank, "but you cannot determine since it is done undercover". The tour confirmed the central bank's assertion that some forex bureaux do not issue BOG receipts, but rather have their own designed receipts. In most cases, they are not issued, the sampling revealed. The BOG on Monday said some forex bureaux operators are engaged in unauthorised business and other malpractices such as engaging in off-shore business or maintaining foreign correspondence relationship. The central bank accused others of operating external accounts for the purpose of engaging in outward and inward forex remittances and other businesses and undertaking businesses reserved for traditional banks. The BOG advised the operators to desist from such activities and operate strictly in accordance with forex bureaux rules and regulations or have their licences revoked and the bureau closed down. Inspectors from the BOG are currently on a nationwide exercise to investigate the operations of forex bureaux.