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Forex trading needs regulatory enhancement - Expert

BY: Maclean Kwofi
Dr Myles Christian Hagan —  Digital transformation and innovation expert
Dr Myles Christian Hagan — Digital transformation and innovation expert

A digital transformation and innovation expert, Dr Myles Christian Hagan, has challenged the Bank of Ghana (BoG) to muster courage and design a deliberate policy that can regulate forex trading in the country.

He explained that forex trading, a simultaneous act of buying one currency, while selling another on a digital platform, was fast becoming the centre of attraction, hence the need for a regulation.

Speaking at a forum to launch an initiative dubbed ‘Elevate Ghana Forex Project’ in Accra on last Saturday, Dr Hagan observed that forex trading had grown steadily over the years and needed an enhanced regulatory enhancement.

He said a regulation would strategically streamline activities for a better economic gain to the country.

According to him, forex trading and cryptocurrencies all over the continent have great potential and have gained momentum in recent times with huge market value.

He regretted, however, that little or no regulatory framework was available to guide and streamline operations and that must be done urgently to protect citizens and enable the state to reap its rightful gains.

“Probably, there has been a delay in regulating this sector because a lot of people need to understand the risk, potential and opportunities available. But now most of the patrons have understood and so we have gotten to a point where there is some confidence that at this stage we can move to the next level and make sure we get the right information, deal with the right platforms and ensure safety.

Certain new things have been learnt in this sector, risk identified and so the need to introduce regulations and clear areas of concern with guidelines to direct people on what to do in instances of challenges, is overdue,” he said.

The project

Meanwhile, Elevate Ghana Forex Project, the first ever forex project initiative in the country, is a 10-year project with an eight months pilot session in the Greater Accra Region.

The project is expected to run in all 16 regions with the target of equipping about 5,000 Ghanaian youth, especially women successfully by 2030.

Lucrative business

The Founder of the project, Mrs Gifty Annor Sika, stated that the project sought to train and equip about 5,000 youth, especially women in the act of forex trading as it was a lucrative business that could be used as an alternative source of income in a pandemic.

“It is only about one out of thousand women in Ghana that is trading in forex and our aim is to get more women into trading. It is about time women got involved and took this as a pandemic proof mechanism to develop multiple streams of income strategy.

“This training goes beyond just forex to financial markets and digital trading. We foster an environment of collaboration/partnership and networking, as well as encourage innovative skillset to meet current trends and financial challenges,” she said.

She added that the Women in Forex Ghana was dedicated to deliver effective and excellent financial literacy training and services with integrity using both proven and innovative methods with much focus on the youth, especially women.