The Bank of Ghana (BoG) has introduced fresh measures to control the way large companies withdraw foreign currency from banks, following growing concern that the practice was putting pressure on the country’s foreign exchange market.
In a statement signed by Ms. Aimee V. Quashie on behalf of the Secretary, the central bank said it had observed with worry that some big companies, including bulk oil distribution firms and mining companies, were withdrawing huge amounts of foreign currency cash from banks without first depositing equivalent foreign currency cash.
The BoG explained that such actions by large corporates were creating unnecessary demand for dollars and other foreign currencies, which in turn was destabilising the market and making it harder for the central bank to maintain exchange rate stability. Ghana, like many countries in Africa, has been battling with the volatility of its currency, the cedi, which often comes under pressure whenever demand for foreign exchange rises.
With immediate effect, the Bank of Ghana has directed all commercial banks in the country to stop paying out foreign currency cash to large corporates unless such transactions are fully backed by equivalent foreign currency deposits lodged by the same institution. The new rule means that companies can no longer walk into banks to withdraw dollars or other currencies in cash unless they had already deposited similar amounts.
According to the statement, banks are also required to keep proper documentation for every foreign currency withdrawal to confirm the source of funds and to ensure accountability. This measure, the Bank noted, will help prevent abuse of the system and strengthen the transparency of forex transactions across the sector.
Despite the strict directive, the Bank of Ghana assured businesses that it remains committed to supporting the operations of large corporates, particularly those in critical sectors of the economy such as petroleum supply, mineral exports, and industrial production. The BoG stressed that it recognises the vital role these companies play in sustaining Ghana’s economy and maintaining essential supply chains.
Ms. Quashie disclosed that the central bank, working in partnership with the Government of Ghana, has already put mechanisms in place to source and provide foreign exchange liquidity to meet the legitimate import obligations of large corporates. She explained that these measures are designed not only to safeguard market stability but also to ensure that vital industries such as oil and mining continue to operate without disruption.
The BoG also warned that banks must comply strictly with this directive. The statement made it clear that any institution found violating the order would face regulatory sanctions. “We expect all banks to comply strictly with this directive and to co-operate fully with the BoG in ensuring that available foreign exchange resources are applied efficiently and transparently,” the statement emphasised.
Furthermore, the central bank called on all relevant industry associations, particularly those representing oil distribution firms, mining companies, and other large corporates, to inform their members about the new directive and ensure that they comply fully.
Analysts believe the directive is part of a broader strategy by the Bank of Ghana to stabilise the cedi and reduce speculation in the forex market. Over the past few years, the country has faced serious challenges with exchange rate fluctuations, leading to higher import costs and rising inflation. The demand for dollars by large corporates often worsens the situation, as banks are forced to meet cash requests that put additional strain on limited forex reserves.
Economists argue that by tightening the rules, the BoG is seeking to reduce the leakage of foreign currency from the banking system and encourage companies to process transactions through transparent channels rather than cash-based withdrawals. Some observers say the move will also make it easier for the Bank to monitor forex flows and identify suspicious or irregular transactions.
However, the new directive could also bring operational adjustments for large corporates that rely heavily on foreign currency cash for day-to-day activities. Some business leaders may raise concerns about how quickly they can access forex under the new rules, especially in industries like oil importation where transactions are highly time-sensitive.
For now, the Bank of Ghana insists that the policy is necessary to protect the economy, ensure transparency, and safeguard the cedi against further depreciation. As global markets remain volatile and Ghana continues to work on strengthening its foreign reserves, the central bank is expected to roll out more measures to control forex use and prioritise essential sectors of the economy.
The latest directive adds to ongoing reforms by the BoG to restore confidence in the financial system and ensure that foreign exchange is used responsibly to support national development rather than being drained through avoidable practices.
