The Bank of Ghana has suspended the foreign exchange (FX) trading licences of two major Nigerian-owned banks, First Bank of Nigeria and Guaranty Trust Bank (GTB). This decision, effective from March 18, 2024, comes in the wake of fraudulent documentation practices observed during the operations of the two financial institutions.
The suspension, lasting for one month, is per section 11 (2) of the Foreign Exchange Act 2006 (Act 723). The official statement from the Bank of Ghana cited multiple breaches of foreign exchange market regulations as the reason behind the action.
The apex bank emphasized that the licenses would be reinstated only when effective controls are implemented to ensure strict adherence to foreign exchange market regulations.
This development unfolds amidst heightened unpredictability in Nigeria's FX market and concurrent efforts by the Central Bank of Nigeria to restore stability, marking a crucial moment for both regulatory bodies and the affected banks.
