For many years, the story of Ghana’s economy was written based on gold, cocoa, and the “latter-day saint”; crude oil, neglecting the powerful effect of remittances.
Many economists and analysts underestimated the critical importance of remittances and how it possesses the potential to drive the nation’s financial sector. It is hard to believe that remittances have officially surpassed cocoa and gold as Ghana’s most significant source of foreign exchange.
This was revealed by financial and banking consultant, Dr. Richmond Atuahene. A startling investigation reveals that nearly half of this money, billions of dollars, may be invisible to official government records due to a massive data disconnect.
In his research work titled “Balance of Payments (BoPs) and Inward Remittances Compilation and Analysis Issues: The Case of Ghana from 2016-2022,” published in the Open Journal of Social Science, Dr. Atuahene exposed the vulnerabilities in Ghana’s remittance regime, and they can be mitigated.
The $2.6 Billion Disconnect
According to Dr. Atuahene, in 2022, the World Bank reported that a staggering $4.7billion flowed into Ghana via inward remittances. However, during that same period, the Bank of Ghana’s official records, supported by the Auditor-General, captured only $2.12 billion.
For the financial expert, the massive $2.6 billion discrepancy wasn’t just a clerical error. It was a critical blind spot that affects the very stability of the Ghana Cedi.
While the money is reaching families for education and health, its full power to stabilize the national currency is being diluted because it is not being captured accurately within the Balance of Payments (BOP) framework.
The Linkage to Fintech Companies
Dr. Atuahene believes that the rise of digital convenience is part of the puzzle. The introduction of the Payment Systems and Services Act (2019) paved the way for a Fintech explosion.
Today, companies like Zeepay, MTN Mobile Money, and ExpressPay offer lightning-fast transfers that bypass traditional bank counters. While these platforms have revolutionized how we receive money, he notes that many are not fully compliant with the Foreign Exchange Act 2006 (Act 723).
When remittances flow through these digital “pipes” without being properly reconciled against the Bank of Ghana’s Nostro Accounts, the country loses the vital foreign exchange cushion it needs to fight the persistent depreciation of the Cedi.
Why This Matters to Every Ghanaian
When remittances are properly tracked and funneled through formal channels, they do more than just pay bills; they act as a national shield.
Currency Stability: They provide the hard currency needed to support the Cedi
Creditworthiness: Stable remittance flows improve Ghana’s access to international capital markets, making it easier for the country to borrow at better rates
Economic Buffer: Unlike foreign aid or loans, this money has no interest and never has to be repaid.
But Dr. Atuahene was quick to add that there is a “boomerang effect”. He explained that if these billions are spent mostly on imported goods, they can actually worsen trade deficits, a phenomenon known as the “Dutch Disease,” where the influx of cash unintentionally hurts local production.
The Roadmap to Fixing the Leak
Dr. Atuahene did not just point out the vulnerabilities. He recommended a number of measures the Bank of Ghana can take to stop this invisible goldmine from slipping away.
Forensic Audits: He called on the Bank of Ghana to commission international firms to conduct forensic audits of the Nostro accounts of Fintechs and Money Transfer Companies to ensure every dollar of foreign exchange is accounted for.
Enforcing the Law: He also emphasized that total compliance with Act 723 is non-negotiable. Every foreign currency transfer must be tied back to authorized dealer banks.
Strategic Alliances: Dr. Atuahene further indicated that there must be a stronger link between high-tech Fintechs and the rural bank networks to ensure that even the most remote transfers help build the nation’s foreign reserves.
The Impact So Far
The High Street Journal is learning that the new management of the Bank of Ghana has implemented some of the recommendations from Dr. Atuahene. The impact has been seen in the significant jump in inward remittances per the Central Bank’s own data.
According to the BoG’s Summary of Financial and Economic Data of 2025 analyzed by The High Street Journal, remittance inflows recorded stronger growth throughout 2025 compared to 2024, with every quarter outperforming the corresponding period of the previous year.
In Q1 2025, remittances rose to US$1.87 billion from US$1.79 billion in Q1 2024. The upward trend strengthened in Q2, increasing to US$3.93 billion from US$3.63 billion. By Q3, inflows had climbed to US$5.98 billion, up from US$5.37 billion a year earlier. The strongest growth was recorded in Q4, where remittances surged to a record US$7.79 billion compared to US$7.10 billion in Q4 2024.
Overall, the data shows a consistent and significant year-on-year increase in remittance inflows across all four quarters of 2025. Reports suggest that the momentum is likely to be maintained in 2026.
The Bottomline
Dr. Atuahene’s analysis of the situation shows that with the right measures and systems in place, the country can reap the full benefits of remittances.
While the BoG is gradually working towards the effective capture of remittance inflows, the challenge now is to ensure that the inflows are not only consumed by households but turned into long-term patient capital to finance ambitious long-term projects.
