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The Bank of Ghana (BoG) has, with immediate effect, directed all banks to cease the payment of unsupported foreign currency (FCY) cash to large corporations as part of measures to ease pressure on the foreign exchange market.
A statement issued by the central bank on 20 August, signed by Secretary Aimee V. Quashie, expressed concern about the growing practice of large cash withdrawals by corporations without corresponding prior FCY cash deposits.
The Bank noted that this practice exerts undue pressure on the foreign exchange market and undermines ongoing efforts to ensure stability.
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The directive stated:
Accordingly, with immediate effect, all banks are directed to discontinue the payment of FCY cash to large corporates unless such transactions are fully supported by equivalent FCY cash deposits lodged by the same institution. Banks must retain proper documentation to confirm the source of funds for every payout.
While reaffirming its commitment to supporting the operations of large corporations, the BoG acknowledged their critical role in sustaining petroleum supply, mineral exports, and other essential sectors of Ghana's economy.
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To this end, the Bank indicated that, in partnership with the Government, it has put in place mechanisms to source and provide foreign exchange liquidity to meet the legitimate import obligations of large corporations. These measures are designed to safeguard market stability while ensuring that vital supply chains remain uninterrupted.
The statement further cautioned that any bank failing to comply with the directive will face sanctions.
The Bank of Ghana in Accra.Photographer: Ernest Ankomah/Bloomberg
It warned:
We expect all banks to comply strictly with this directive and to cooperate fully with the Bank of Ghana in ensuring that available foreign exchange resources are applied efficiently and transparently. Non-compliance will attract appropriate regulatory sanctions.
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The BoG also urged relevant industry associations to bring the notice to the attention of their members and ensure strict adherence.
Bank of Ghana statement