The Ghana Association of Banks (GAB) has urged the Bank of Ghana (BoG), to review and increase the amount of money they are required to keep with a foreign bank for international transactions referred to a Nostro account, as well as its affiliate exposure limits to ease constraints on international transactions. The appeal was made during a high-level meeting between GAB and the central bank, where key industry challenges were discussed.
Ghanaian banks are finding it increasingly difficult to facilitate smooth cross-border transactions due to restrictions on Nostro and affiliate exposures. This bottleneck is making trade and investment more challenging, frustrating businesses and individuals who rely on international banking services. GAB argues that lifting these limits would provide banks with greater liquidity and enhance their ability to operate efficiently in the global financial system.
The Governor of the Bank of Ghana Dr. Johnson Asiama acknowledged the concerns raised by the banking sector and assured GAB members that the central bank is committed to assessing the situation. He emphasized that while financial stability remains a priority, a balanced approach is necessary to ensure that banks can support international trade and investment without unnecessary barriers.
For years, Ghanaian banks have struggled with these restrictions, especially as the country’s credit rating challenges have made it difficult to establish and maintain correspondent banking relationships. With businesses increasingly operating on a global scale, GAB believes that an upward revision of Nostro limits would strengthen Ghana’s position in the international financial market and improve trade facilitation.
Beyond the Nostro and affiliate exposure limits, discussions at the meeting also covered the Cash Reserve Ratio (CRR), foreign exchange policies, and the regulation of Money Transfer Operators (MTOs). The central bank reiterated its commitment to reviewing policies in a manner that fosters economic growth while maintaining financial sector stability.
Industry experts argue that a more flexible regulatory framework will allow Ghanaian banks to compete better globally, attract foreign investment, and ultimately contribute to the country’s economic development.
