Bank of Ghana suspends foreign exchange (FX) trading licences of two Nigerian Banks.

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The Bank of Ghana  had suspended the foreign exchange (FX) trading licences of two Nigerian-owned banks over fraudulent documentation and regulatory breaches during operations.

The Ghanaian apex bank, in a release on Monday, said the suspension which is set commence from March 18, 2024, is for one month.

The two financial institutions are Guaranty Trust Bank (GTB) and First Bank of Nigeria (FBN).

The development comes within the high levels of volatility in Nigeria’s FX market and the efforts by the federal government to restore stability.

“Bank of Ghana has suspended the Foreign Exchange Trading Licences of Guaranty Trust Bank Ghana Limited (GTB) and FBN Bank Ghana Limited (FBN), effective 18th March 2024, for a period of one (1) month, in accordance with section 11 (2) of the Foreign Exchange Act 2006, (Act 723),” the statement reads.

“This is as a result of various breaches of the foreign exchange market regulations, including fraudulent documentation in their foreign exchange operations which have come to the attention of the Bank of Ghana.

“The licence will be restored at the end of the one-month suspension period once the Bank of Ghana is satisfied that they have put in place effective controls to ensure strict adherence to regulations to the foreign exchange market.”

The financial regulator also urged FX market players to adhere strictly to the applicable regulations and guidelines.

Meanwhile, on March 1, 2024, the Central Bank of Nigeria (CBN) also suspended the licences of 4,173 bureau de change (BDC) operators for failing to observe regulatory provisions which seems to be same that Suspends Guaranty Trust Bank (GTB) and First Bank of Nigeria (FBN) in Ghana.