Black market takes over forex
Despite their illegality, the black market foreign exchange business seems to be booming within the Airport Area and Accra Central.
Interestingly, those operating around the Airport go about their business right under the noses of law enforcement officers at the Airport Police Station without much hassle.
Whether you are walking or driving, you find foreign currency black marketeers sitting on benches strategically located just a few metres from the police station while others operate behind the Customs, Excise and Preventive Service (CEPS) Barracks.
Most of the black market operators who are non-Ghanaians, virtually accost you even when you are driving to find out if you want to change some foreign currency.
Some openly entice you to "come I will give you good price." The lucky ones go to the extent of jumping into cars to transact their business, to the detriment of other road users.
At Accra Central, the situation is not different from Lava all the way to Cow Lane on the High Street. The currency black market business is done in broad daylight, ironically in the same area where most of Ghana's top financial houses transact legitimate business.
Some of the black marketeers usually hold your hand and walk with you just to find out if you have some foreign currencies you would like to change.
The black market in currencies refers to the illegal or parallel market in foreign exchange in various countries around the world. The market forms part of the underground economy by virtue of the operations being done outside legal banking channels.
The currency black market flourished in Ghana until the financial market was liberalised in 1988 to allow the operation of forex bureaus. Before then, the black market was the only alternative to the more restrictive foreign exchange system operated by the traditional banks.
"Cow Lane" became synonymous with the black market because it was the main hub of the currency black market activity.
A customer who was spotted at Airport buying some Pounds Sterling to pay his international fees disclosed that the black marketeers never run out of foreign currency; additionally, they have cheaper buying rates.
"The banks and forex bureaus never seem to have the amount of Pounds Sterling I need. The rates for the little I am able to squeeze from several forex locations cannot compare with the attractive rates offered by just one black marketeer. So that is the only option for me to get foreign currency to settle the fees for my distance learning," he explained.
A forex bureau operator at the Airport Residential Area lamented that those operating in the black markets were killing their business because of the rates they are willing to give customers.
"Besides, per the Bank of Ghana regulations, forex bureaus no longer display the buying and selling rates on their boards to attract customers. Potential customers, therefore, run to the black market where they can bargain for a better rate," he explained.
The existence of the black market also means loss of revenue for the government. Forex bureaus are taxed, currency black market transactions, which are "under the table", are not taxed.
Per Section 29 of the Foreign Exchange Act, 2006, it is a crime to deal in foreign exchange without a licence.
In an interview with ASP Joseph Darkwah, the Public Relations Officer of the Police Criminal Investigations Department (CID), he said his outfit was not aware that the black market business was still thriving at the areas mentioned, especially Airport, which is very close to the police station.
"Some time ago we had an unannounced operation there and raided the place to prevent them from operating from the place. Now that you have drawn our attention to it, we shall do something about it," he assured.