The Bank of Ghana (BoG) has directed all commercial banks to discontinue the payment of foreign currency (FCY) cash to large corporates unless such transactions are fully backed by equivalent FCY cash deposits lodged by the same institution.
The directive primarily affects companies in critical sectors such as petroleum distribution, mining, and other essential industries that drive Ghana’s economy. The central bank said it observed a growing practice where some large corporates were withdrawing foreign currency without prior deposits, a trend that “exerts avoidable pressure on the foreign exchange market and undermines efforts to ensure stability.”
To enforce the measure, all banks are now required to retain proper documentation confirming the source of funds for every payout. The BoG emphasized that it expects strict compliance, warning that non-adherence “will attract appropriate regulatory sanctions.” At the same time, the Bank reassured that it “remains committed to supporting the operations of Large Corporates, recognizing their critical role in sustaining petroleum supply, mineral exports, and other essential sectors of Ghana’s economy.”
The central bank, in partnership with the government, has also put in place mechanisms to ensure sufficient foreign exchange liquidity to meet legitimate import obligations, helping maintain uninterrupted supply chains.
Beyond these formal measures, there have been broader concerns in the market that some companies or businesspeople have struggled to access forex through commercial banks, with claims that dollars are unavailable despite official assurances to the contrary. Analysts suggest that part of the challenge may stem from the way some large corporates request cash payouts instead of instructing banks to make payments on their behalf.
Such practices can inadvertently increase demand for physical dollars, potentially encourage hoarding, and create opportunities for supply to leak into the black market. The new BoG directive, by requiring cash withdrawals to be backed by deposits, is expected to reduce unnecessary demand for forex, limit hoarding, and decrease the likelihood of funds being diverted outside formal channels.
Companies are now required to plan their foreign currency needs carefully, ensure deposits are in place before withdrawals, and maintain transparent documentation.
Failure to comply may result in operational delays or regulatory penalties, while the forex market is likely to benefit from enhanced stability and better management of limited resources.
