The Bank of Ghana’s directive barring banks from paying foreign currency cash to large companies unless they have deposited the same is a short-term fix that threatens long-term stability. Designed to safeguard dwindling reserves, the policy instead risks strangling the very sectors that keep the economy moving.
Large firms in manufacturing, trade, and essential services depend on timely access to forex for importing raw materials. Restricting supply slows production, raises costs, and disrupts supply chains. Consumers ultimately bear the price through higher costs and shortages.
The unintended consequences are even more troubling. Companies squeezed by official channels will inevitably turn to the parallel market, widening the spread between official and black-market rates while eroding regulatory oversight. The policy also dents investor confidence, sending a dangerous message that Ghana is unreliable when it comes to forex access, a critical factor for global businesses assessing where to invest.
The ripple effects could be severe: weakened supply chains, job losses, and shocks to SMEs reliant on larger firms. Instead of penalizing productive businesses, policymakers should confront the structural issues behind forex scarcity, Ghana’s persistent trade deficit, limited export base, and overdependence on imports.
Smarter alternatives exist. The BoG could improve transparency and efficiency in forex allocation, prioritize access for productive sectors, and encourage hedging tools to help firms plan ahead. These measures strengthen reserves without crippling businesses.
Bottom line, Ghana does not need blunt restrictions. It needs targeted, growth-friendly policies that build forex buffers while sustaining the economy.
