Forex Analyst and Founder of Women in Forex Ghana, Gifty Annor-Sika has estimated the cost of underutilization of online forex trading market to be US$200 million annually.
Speaking on the Market Place with Charles Ayitey, Gifty Annor-Sika warned of prospective fiscal losses to the Ghanaian economy if instruments are not introduced to regulate the market.
"The market is barely regulated. Non-existence of regulation and exact policies have made the venture into online forex trading illegal. This has bred a whole cartel of black market operatives. In all, US$200 million has been lost by the state for its failure to regulate the space," she revealed.
Forex trading is still green in Africa especially West Africa. There are few individuals engaged in it and currently people are beginning to venture into it in Ghana.
The Ghana Stock Exchange is yet to begin trading in that space, whilst the cedi is not tradable due to its constant depreciation on the global market. The GSE is limited to stocks and bonds, and this limitation has impacted negatively on the Ghanaian economy and its currency.
The good news however is that the Securities and Exchange Commission announced in 2020 it is embarking on a collaboration with Bank of Ghana to design an initiative a forex trading market which would allow the capital market regulator to regulate and give license to enterprises dedicated to forex market traders in Ghana.
This is because foreign investors are currently eyeing Ghana for such engagements.
This will give a legal backing to carrying out trading activities on domestic trading platforms.