After the cedi’s value dropped, the Bank of Ghana and law enforcement arrested 70 black market merchants.

The Bank of Ghana has worked with the police to arrest more than 70 people for engaging in unauthorized forex trading as part of an attempt to stem the decline of the cedi versus the dollar.

Dollar/Cedi exchange rates are speculated to be artificially inflated due to illicit market FX trading.

In a special operation that reportedly targeted Rawlings Park, Makola, and Tudu, Citi News reports that the black market currency merchants were apprehended.

According to Citi News, Adjoa Konadu Torto, head of the Forex Exchange Bureau at the Bank of Ghana, said that the raid and arrest of the illegal market would halt the fast decline of the cedi.

As part of the Bank’s plan to clean up the foreign currency market, this special operation was conducted. Other measures include “intensified public sensitization and media engagements to educate the general public on forex rules and regulations, including the need to avoid the black market;” and “enforcement of compliance from licensed foreign exchange bureaux” regarding the taking of customer identification (Ghana card) and the issuance of an electronic receipt for every forex transaction.

She revealed that authorities were planning to raid other areas of the country to root out those engaged in illegal forex trading.

She warned the public against engaging in unlicensed currency exchange transactions.

Because of the recent drop in the value of the cedi, the Bank of Ghana has taken steps to shut down illegal foreign exchange businesses.

Meanwhile, revealed in an earlier piece that the central bank is taking severe steps against forex bureaus flouting the foreign exchange legislation to combat the cedi’s devaluation.

Dr. Joseph France, BoG’s Head of Financial Stability, has announced several new steps designed to prevent further depreciation of the cedi and related financial stability concerns, such as a crackdown on illegal forex trading.

According to him, the central bank has received complaints about certain forex bureaus and is currently investigating them. For instance, he disclosed that certain foreign exchange bureaus have been manipulating forward rates and not issuing transaction receipts.

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