The International Monetary Fund (IMF) has thrown its weight behind the Bank of Ghana’s (BoG) latest foreign exchange (FX) directives, describing them as critical to protecting the cedi’s role as the country’s sole legal tender while safeguarding financial integrity.
At a press briefing in Washington this week monitored by The High Street Journal, the IMF’s Communications Director, Julie Kozack, explained that the new rules are designed to tighten controls on foreign currency transactions, promote formal channels for remittances and trade, and ensure greater transparency in Ghana’s FX market.
She insisted that despite the agitations from the business community and some individuals, these measures are steps toward broader financial integrity, compliance with anti-money laundering rules, and stronger transparency.
“The Bank of Ghana’s latest directives are intended to reinforce the role of the cedi as the sole legal tender in the country. They’re meant to tighten controls on foreign currency transactions and to promote formal channels for the provision of remittances and trade,” Kozack noted.
She continued, “These are steps toward broader financial integrity, compliance with anti-money laundering rules, and broader transparency in the FX market.”
Many analysts have also confirmed that by reinforcing the use of the cedi in domestic transactions, the Bank of Ghana aims to reduce dollarisation, a trend that has fueled exchange rate volatility and undermined confidence in the local currency.
Traders often face unpredictable price hikes when suppliers demand payment in dollars. With tighter rules, the hope is that more transactions will be cedi-denominated, bringing stability to local pricing.
For businesses engaged in import and export, the new tight framework encourages the use of formal banking channels for remittances and trade settlements. This could reduce leakages, improve access to foreign exchange, and create a level playing field for compliant firms.
On the whole, the IMF maintains that these reforms are meant to plug loopholes that enable illicit flows, money laundering, and underhanded FX dealings. By closing the backdoor routes, the BoG seeks to build a more transparent financial system, aligning Ghana with global compliance standards and boosting investor confidence.
The IMF’s endorsement signals strong international backing for the central bank’s move, especially as Ghana works to restore economic stability under its ongoing bailout programme.
The challenge, however, will be consistent enforcement. If rigorously applied, the measures could help restore trust in the cedi, tame speculation, and strengthen Ghana’s fight against illicit financial activity.
