Accra: The Bank of Ghana (BoG) has instructed all banks to halt the payment of foreign currency (FCY) cash to large corporates unless these transactions are fully backed by corresponding foreign cash deposits made by the same institutions. This directive aims to ensure that banks maintain proper documentation to verify the source of funds for each payout.
According to Ghana News Agency, the Bank of Ghana issued a notice, signed by its Secretary, expressing concern over the increasing trend of foreign currency cash withdrawals by large corporates that are not directly funded by prior FCY cash deposits. The BoG highlighted that this practice places unnecessary pressure on the foreign exchange market and undermines efforts to maintain stability.
The statement further identified the large corporates involved, including Bulk Oil Distribution Companies, mining companies, and similar entities. The Bank of Ghana acknowledged the importance of these large corporates in sustaining essential sectors such as petroleum supply and mineral exports, and emphasized its commitment to supporting their operations.
To address these concerns, the BoG, in collaboration with the government, has implemented measures to source and provide foreign exchange liquidity to fulfill the legitimate import obligations of large corporates. These strategies are designed to protect market stability while ensuring that critical supply chains remain intact.
The BoG expects all banks to adhere strictly to this directive and work closely with the institution to ensure that foreign exchange resources are utilized efficiently and transparently. The notice warns that non-compliance will result in appropriate regulatory sanctions. Additionally, it calls on relevant industry associations to inform their members of the directive and ensure their compliance.
