The recent directive issued by the Bank of Ghana (BOG) on August 20, 2025, has significant implications for the financial and business landscape in Ghana. The central bank has instructed commercial banks to suspend payments of foreign currency cash for large corporate clients unless they have matching foreign currency deposits at the Bank of Ghana.
This move by the BOG underscores its commitment to safeguarding foreign reserves, stabilizing the cedi, and implementing sound economic management amidst global economic challenges and external shocks.
As a seasoned business coach in Ghana and the West African sub-region, I view this directive as a pivotal development in the country’s banking and business environment. It presents both opportunities and challenges that stakeholders need to understand.
Advantages of the directive:
Preservation of foreign exchange reserves: The directive helps protect Ghana’s dwindling foreign reserves by preventing unauthorized dollar outflows from the banking system. By requiring matching deposits for foreign currency cash payouts, the BOG ensures prudence in managing foreign exchange resources.
Promotion of sound cash management by corporates: The directive encourages large companies to align their foreign currency demands with actual deposits, fostering fiscal responsibility. This could lead to improved management of foreign currency cash flows and the adoption of transparent and efficient settlement channels.
Reduction of shadow foreign exchange markets: The directive aims to curb parallel market operations where foreign currency cash is traded outside formal banking channels. By tightening access to foreign currency cash, the BOG seeks to minimize distortions in the formal economy.
Disadvantages of the directive:
Challenges in cash flow for large corporates: Large companies reliant on foreign currency cash for import-related activities may face immediate cash flow pressures. This could disrupt their operations, increase costs, and impact competitiveness.
Reduction in business flexibility: The directive limits corporates’ ability to access foreign currency cash without sufficient deposits, potentially constraining their working capital and hindering expansion or investment plans.
Risk of creating a black market for currency exchange: While intended to curb black-market trading, the directive could inadvertently drive some businesses to seek foreign currency cash through informal channels. This could undermine the central bank’s objectives and increase vulnerability to exchange rate volatility.
In conclusion, the BOG’s directive to suspend cash payments of forex to large corporations without matching deposits is a strategic move to enhance forex stability and financial discipline. While it offers benefits in terms of reserve protection and market stability, it also poses operational and flexibility challenges that businesses must navigate.
As we adapt to this new directive, it is crucial for corporates to prioritize strategic forex management and leverage formal banking channels for foreign currency transactions. By striking a balance between compliance and flexibility, businesses can navigate the evolving financial landscape effectively.
The author is a Senior Lecturer and SME Industry Coach at the University of Professional Studies Accra. For inquiries, contact ayiku.andrews@upsamail.edu.gh or follow on social media @Andy_ayiku. the perspective of a travel blogger about the top destinations for 2021.
As travel restrictions begin to ease and the world slowly reopens, many eager travelers are starting to plan their next adventures for 2021. From breathtaking landscapes to vibrant cities, there are countless destinations to explore this year. Here are some of the top destinations that should be on every traveler’s radar for 2021:
1. Iceland – Known for its otherworldly landscapes, Iceland is a must-visit destination for nature lovers. From majestic waterfalls to geothermal hot springs, there is no shortage of natural wonders to explore in this Nordic island nation.
2. Japan – With its unique blend of modernity and tradition, Japan offers a one-of-a-kind travel experience. Whether you’re exploring the bustling streets of Tokyo or relaxing in a traditional hot spring in the countryside, Japan has something for everyone.
3. Greece – With its stunning beaches, ancient ruins, and delicious cuisine, Greece is a perennial favorite among travelers. Whether you’re island-hopping in the Aegean Sea or exploring the historic sites of Athens, Greece is a destination that never disappoints.
4. New Zealand – For outdoor enthusiasts, New Zealand is a paradise. From hiking in the Southern Alps to exploring the geothermal wonders of Rotorua, there is no shortage of adventure to be had in this island nation.
5. Costa Rica – Known for its biodiversity and eco-friendly ethos, Costa Rica is a great destination for those looking to immerse themselves in nature. Whether you’re zip-lining through the rainforest or relaxing on a pristine beach, Costa Rica has something for everyone.
6. Morocco – With its bustling souks, ancient medinas, and stunning desert landscapes, Morocco is a destination that offers a sensory overload. Whether you’re exploring the vibrant markets of Marrakech or riding a camel through the Sahara, Morocco is a destination that will leave a lasting impression.
7. Australia – From the iconic Great Barrier Reef to the rugged Outback, Australia is a country that offers a diverse range of experiences for travelers. Whether you’re snorkeling with colorful fish in the coral reefs or exploring the cosmopolitan city of Sydney, Australia is a destination that is sure to captivate.
As we look ahead to 2021, these are just a few of the top destinations that should be on every traveler’s bucket list. Whether you’re seeking adventure, relaxation, or cultural immersion, there is a destination out there waiting to be explored. So pack your bags, book your flights, and get ready for an unforgettable journey in the year ahead.
