A Banking Marketing consultant has lauded the Financial institution of Ghana’s motion towards Barclays Financial institution Ghana, indicating it is a stage in the suitable way.
Dr Richmond Atuahene suggests “…So for me, it is portion of the carry out polices which I think, it is all right with the Financial institution of Ghana which is quite great due to the fact the pricing of the currency is really important.”
Speaking with JoyBusiness on Tuesday, he stated: “We all have listened to the cedi not accomplishing pretty nicely of late, so someone chose to consider another benefit of it then it usually means you want to place further more tension on Lender of Ghana. So I consider it is a action in the correct direction.”
Dr Atuahene extra, “And a lot more importantly, you know Barclays is fond of executing that, international plc, in August 2016, they did a identical thing with the London Interbank Presented (LIBO) Price. In 2012, they did a equivalent point with the LIBO fee, so I really don’t know irrespective of whether it is a follow or some thing so I think Lavatory did really effectively by observing this and having data of this and sanctioning them really nicely, that will provide sanity in the Fx market.”
Cracking the whip
Dr Atuahene also known as for demanding software of the different polices to make certain good enjoy in the sector. “For regulation, you really don’t decide on and decide on what is good for the goose is good for the gander. You don’t pick mainly because you have a connection, since the guidelines are there.”
He included, “You want to apply it strictly and religiously so that everybody will know you are accomplishing your position. At least it is a great starting. For me, the enforcement and sanctions have been really weak in this nation stemming from the banking disaster the foreign exchange problems people have been not playing the video game according to the rules.”
“So I believe we should commend them [BoG] for fining them heftily because in 2016 they had been fined $160 million by federal reserves for manipulating the LIBO fee so I never know why they retain applying manipulative rates.”
“It sends a very good signal to the market that Lavatory is now cracking the whip which to me is the very best for us.”
Last Monday, the Financial institution of Ghana (Bathroom) fined the Barclays Bank Ghana an amount of ¢4,579,256.36 for building frivolous prices on Ghana’s Interbank Overseas Exchange Current market.
“This action is in breach of the Ghana Interbank Forex Marketplace Carry out Regulations. The Bank of Ghana is dedicated to ensuring sanity, transparency and marketing ideal procedures that serve to build and deepen the Fx sector in Ghana,” Bathroom reported in a statement.
“In pursuit of the earlier mentioned aims, the Financial institution of Ghana will not wait to sanction any industry participant whose actions contravene Ghana’s Interbank Forex Industry Perform Policies,” the statement included.
In a assertion, Barclays Ghana said, “We are participating with the regulator on this matter and will update you of developments.”