The recent directive from the Bank of Ghana (BoG) suspending foreign currency cash payments to large corporations has sparked backlash from the African Policy Lens (APL), a policy think tank. The APL has called for the immediate withdrawal of the directive, citing its economic harm and disconnect from business realities.
Issued on August 20, 2025, the BoG’s order instructs banks to halt foreign currency cash disbursements to large firms unless backed by prior foreign cash deposits from the same institutions. The APL condemned the measure as “draconian” and “regressive,” expressing concerns about its potential impact on the Ghanaian economy.
In a statement, the APL criticized the BoG for prioritizing short-term exchange rate stability over long-term economic sustainability. The group questioned the practicality of the directive for key sectors such as Bulk Oil Distribution Companies (BDCs) and mining firms, highlighting the challenges they may face in complying with the new rule.
The APL raised valid points about the feasibility of the directive, pointing out the difficulties that companies like BDCs may encounter in obtaining foreign currency for deposits before importing essential goods. The group also questioned whether the directive could inadvertently push corporations towards transacting in the black market, undermining the stability of the local currency.
Furthermore, the APL challenged the BoG’s rationale for the directive, noting a perceived contradiction in the central bank’s approach to exchange rate management. The group emphasized the need for the BoG to reconsider its decision and adopt more sustainable economic measures that align with the realities of businesses in Ghana.
The statement issued by the APL was signed by Dr. George Domfeh, a Senior Lecturer in Economics at the University of Ghana and Head of Research at the think tank. The call for the withdrawal of the BoG’s directive reflects growing concerns about its potential impact on the Ghanaian economy and the business community.
Overall, the APL’s critique of the BoG’s directive underscores the importance of balancing short-term policy goals with long-term economic stability and growth. The think tank’s advocacy for a more holistic approach to forex regulations highlights the need for policymakers to consider the broader implications of their decisions on businesses and the overall economy.
