Gov’t asked to ban Forex Bureaux
The President of the United States Africa Command (AFRICOM) Ghana, Mr. Abednego Rawlings Orstin, has urged President John Dramani Mahama to take a decisive step by banning forex bureau operations in the country. He believes these outlets are a major factor behind the continued depreciation of the Ghanaian cedi.
In an interview, Mr. Orstin acknowledged recent efforts to stabilize the cedi but warned that without firm action against forex bureaux, any gains made would be short-lived.
“I appreciate the current strengthening of the cedi, but if proper measures are not put in place, these forex bureaux will continue to undermine that progress,” he said.
He criticized past administrations—particularly that of former President Nana Akufo-Addo and former Finance Minister Ken Ofori-Atta—for failing to act on what he described as repeated warnings about the damaging effects of forex bureau activities.
“Under President Nana Addo Dankwa Akufo-Addo, the cedi fell to over GHC17.00 to a dollar. This happened because they ignored sound advice and allowed the reckless operations of forex bureaux to continue unchecked,” he lamented.
Mr. Orstin argued that forex bureaux fuel artificial demand and speculative pricing for foreign currency, which contributes to the weakening of the cedi.
“The central bank gives the dollar at around GHC10.00, yet forex bureaux sell it at GHC12.00 or more without any legitimate justification.
Why should there be a GHC2.00 margin for no value-added activity?” he questioned.
He praised the late Vice President, Paa Kwesi Bekoe Amissah-Arthur, for policies that helped curb the misuse of foreign currency and brought in revenue through effective monetary controls.
Mr. Orstin recalled how the former Vice President enforced rules that required travelers to show visas and tickets before receiving foreign exchange, which was capped at $5,000 per person. He also highlighted the taxation of dormant foreign currency accounts and tighter restrictions on dollar withdrawals as smart and impactful policy measures.
“He introduced taxes on dormant foreign currency accounts and stopped banks from freely issuing physical dollars to account holders.
Foreign exchange was only issued to travelers who provided visas and tickets, with a limit of $5,000 per person. That was sound economic policy,” he noted.
He criticized the New Patriotic Party (NPP) government for reversing these policies, which he said encouraged currency hoarding and speculation, weakening the cedi further.
“The decision to abolish those policies led to increased foreign account holdings, reduced currency circulation, and further weakened the cedi,” he stated.
Mr. Orstin concluded by renewing his call for the Mahama administration to consider a complete ban on forex bureau operations, describing it as a critical move to stabilize the cedi and safeguard the economy.