A leading economist and policy analyst, Dr. Samuel Nana Yaw Adutwum, has called for the temporary suspension of forex bureau operations in the country in order to stabilize the economy and combat illicit financial activities in the country.
Speaking on the News Desk on Joynews on February 19, Dr. Adutwum emphasized that the free flow of forex transactions without proper supervision has contributed significantly to currency instability and economic challenges in the country, adding that some forex bureaus serve as avenues for unapproved trading and unregulated financial activities.
“If you walk through some locations in our city, not only in Accra but also in other cities, you will find areas known for black market forex trading. Law enforcement is aware of these activities but struggles to curb them effectively because of how deeply entrenched they are. The forex market is so liberalized that anyone can walk in and purchase forex without stringent checks. This unregulated flow of foreign currency fuels capital flight and speculative trading, weakening our economy,” Dr. Adutwum said.
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He further stressed on strengthening enforcement within the forex market to reduce illegal transactions and blackmarket operations and the importance of boosting local industries to reduce reliance on foreign goods and stabilize demand for foreign currencies.
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Dr. Adutwum pointed out that some advanced countries, like South Africa and the United Arab Emirates, have strong rules controlling foreign exchange transactions, such that only authorized banks and financial institutions can handle foreign exchange, and they must follow strict guidelines.
“Several advanced economies, such as South Africa and the United Arab Emirates, have stricter controls on forex transactions, ensuring that only registered financial institutions handle foreign exchange dealings under stringent regulations.”