Currently, there is an increase in the number of Forex traders in Ghana. But, they are limited to foreign trading since there is no regulatory framework for domestic Forex trading in Ghana. In fact, Forex trading in Ghana does not have a legal backing.
Therefore, Ghanian Forex traders can only trade in foreign markets via offshore-based forex brokers that accept mobile money and traders from Ghana.
The Plan Of SEC
A new initiative is being designed by the Securities and Exchange Commission (SEC) with the permission of the Banks in Ghana. This initiative would allow the Capital market regulator to regulate and give license to enterprises as dedicated Forex market traders in ghana. These enterprises will have legal backing to carry out trading activities on domestic trading platforms.
The SEC plans to give enterprises licenses instead of individuals because enterprises can be easily monitored and have a better tendency for regulatory compliance than individuals. That being said, the SEC also put into consideration that enterprises will have bigger trading volume capacity and efficient technical trading know-how than most individuals.
SEC is now trying to find out the volumes of the current and potential trading executed by traders in Ghana. They also seek to identify and brainstorm with between 20 and 30 private Forex traders in Ghana on how to develop an efficient trading platform and a regulatory framework.
There was a plan by the Capital Market Regulatory Institution to design a dedicated forex market trading industry this year, but this great plan, which could have brought smiles to the face of many traders, was brought to a halt by the outbreak of the COVID-19 pandemic that ravaged the whole world. This new initiative is a great relief to many Ghanian traders, and it will go a long way to encourage many forex trading enterprises to start up something in Ghana.
What Does This Forex Trading Regulation Mean For Ghanaians?
It is interesting to take note that some foreign financial institutions, including major international banks, have started showing interest in establishing dedicated forex trading subsidiaries in Ghana. This is a wonderful development, and it will help contribute to the development of the Ghanaian economy. These financial institutions are ready to start up as soon as the license is ready, and the coast is clear.
If you trade Forex in Ghana or have the interest to do so, this is great hope for you, as more opportunities are on the way with this new development. Forex trading has to do with foreign exchange, and it has greatly become a good source of livelihood for a lot of people around the world.
Most of the wealthy people in the world are into Forex trading. And this trading is being done increasingly by many individuals in Ghana. Unfortunately, most of these individuals can not trade in their local currency, and it has been a great concern to many. But this upcoming regulatory initiative is a great one as it will draw more and more people into the trade.
The Bottom Line
Many Forex trading enterprises will surely spring up, and if just a piece of news about the upcoming law can draw the attention of some foreign financial institutions and international banks, what will happen when the regulatory framework is fully on the ground?
As the SEC begins to roll out licenses to interested enterprises. This implies that there is a bright future ahead for Forex trading in Ghana. In fact, Forex trading has come to stay in Ghana.