Barclays bank Ghana has been fined 4.5 million Cedis by Bank of Ghana for fleecing their customers by giving them preposterous quotes on the interbank foreign exchange market, in breach of Ghana’s Interbank Forex Market Conduct Rrules.
In a press statement Monday, the central bank disclosed the amount of 4,579,256.36 Cedis and warned that as the regulator, it “will not hesitate to sanction any market participant” whose actions violate Ghana’s Interbank Forex Market Conduct Rules.
Banks in Ghana are known for always having forex rates that are not as good as what forex bureaus provide, with higher spreads that are in favour of the bank, making the forex bureaus the preferred choice of many Ghanaians who don’t have any money to joke with. Unfortunately, some will still get caught up in changing their currency with Barclays sometimes.
Moreover, some customers of these banks such as big businesses, may not have a safe alternative choice especially when it comes to conversion and transfer of huge amounts. In those cases, they will accept the small pesewas lost on each unit of money converted. And that’s where the banks rake in some cash: the bigger the amount of foreign currency they buy from one customer, the bigger the profit.
Hopefully other banks in Ghana would take a cue from this fine and keep their forex quotes sensible and fair.