Bank of Uganda-BoU has advised money changers in the country to legalize their operations.
According to the Central Bank, whereas it is inevitable to eliminate informal forex exchange business that is common at many border points and Kampala, the foreign exchange Act 2001 and foreign regulations 2016 allow only persons with a license granted by the central bank to operate forex business.
BoU is meeting different stakeholders across the country to discuss the role of the central bank in the economy.
Nelson Bbosa, an expert in Non-Banking financial institutions at BoU, says that the BoU wants all money changers to come under regulations and if they are small to meet requirements, they should form associations. He said that this will help the banking sector have standard financial statistics that can help in policy formulations but also stiffen consumer protection.
Bbosa also said that from BoU research, illegal money of about 13 billion shillings changes hands on a daily basis with most of it facilitated by money changers. He added that the existence of unregulated money changers threatens consumer transactions and national security.
Jona Waiswa, the head of Public Education at BoU said that regulating money changers also grants them the security of their resources. He also warned money changers operating at Mpondwe to stop fraudulent acts while exchanging currencies for their clients.
Jovia Peace, who operates a Forex Bureau in Bwera welcomed the advice but said there is a need for more sensitization because the unregulated money changers have affected their customer turn-out.