There is growing dissatisfaction among bank customers with foreign accounts due to steep monthly maintenance fees. Complaints have surged on social media, with some customers reporting charges of up to GH₵500, while others are paying between $5 and $10, translating to approximately GH₵80 to GH₵160.
The High Street Journal has learned that these fees vary depending on the bank and the balance in the foreign account. Maintenance charges typically range from $5 to $10, but some banks impose higher fees based on the account balance.
Sources suggest that these increased charges are a response to a Bank of Ghana policy implemented in March 2024. The Monetary Policy Committee revised the Cash Reserve Ratio (CRR), requiring banks to maintain varying reserve percentages based on their Loan to Deposit ratios. Banks with a Loan to Deposit ratio above 55% must hold a CRR of 15%, those with ratios between 40% and 55% need to maintain a CRR of 20%, and banks with ratios below 40% must hold a CRR of 25%.
Effective from April 2024, this policy mandates that banks hold a percentage of foreign currency deposits as reserves in Ghanaian cedis. With the cedi’s depreciation, this reserve requirement becomes increasingly costly for banks, prompting them to charge higher fees or discourage foreign currency deposits.
The aim of the CRR policy is to mitigate the depreciation of the cedi, but the local currency has continued to lose value, dropping over 22% since January 2024. This has led banks to impose high maintenance fees and create obstacles for customers who wish to deposit foreign currency, thereby discouraging the holding of foreign accounts.
Market watchers say the Central Bank policy will compel people to rather keep their foreign currency in their homes instead of the banks, which in turn will lead to supply shortfalls and further rise in the dollar rate. Other contend that the policy is rather driving forex business away from the banks to the black market, a situation that that hurts the economy in the long run.
Meanwhile the dollar was selling as high as GH¢16.65 at some forex bureaux on Friday.
