The Bank of Ghana (BoG) has issued a directive to all banks to cease foreign currency cash payments to large corporates unless there are prior deposits from the same institutions to back the transactions. This move comes as the Central Bank has observed a concerning trend where Bulk Oil Distribution Companies, mining firms, and other major corporates withdraw foreign currency in cash without equivalent deposits, putting pressure on Ghana’s foreign exchange market and destabilizing the economy.
In a notice released on August 20, the BoG emphasized the importance of proper documentation to verify the source of funds for every foreign currency payout. The directive stated that banks must discontinue the payment of foreign currency cash to large corporates unless there are equivalent foreign currency cash deposits from the same institution. Non-compliance with this directive will result in regulatory sanctions.
While acknowledging the crucial role of large corporates in sustaining vital sectors such as petroleum supply and mineral exports, the Bank of Ghana assured stakeholders that mechanisms are in place to provide foreign exchange liquidity to meet legitimate import obligations. The Bank aims to safeguard market stability and ensure that supply chains remain uninterrupted.
The Central Bank has urged industry associations to disseminate the directive among their members and ensure full compliance. This measure is seen as essential to maintain stability in the foreign exchange market and support the overall economy.
Overall, the Bank of Ghana’s directive aims to address the misuse of foreign currency cash payments and promote transparency and accountability in financial transactions. By implementing these measures, the Central Bank seeks to protect the economy from unnecessary pressures and maintain a stable financial environment for all stakeholders involved.
