Stop Foreign Currency Cash Payments without Deposits – BoG Orders Banks
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) has directed all commercial banks to immediately halt the practice of paying out foreign currency cash to large corporates unless such payments are fully backed by equivalent deposits.
In a notice issued on Wednesday, August 20, 2025, and addressed to the banking sector and the general public, the central bank said it had observed with concern the growing trend of large corporations—including bulk oil distribution companies, mining firms, and other major enterprises—demanding foreign currency cash from banks without corresponding deposits.
According to the BoG, this practice exerts “avoidable pressure” on the foreign exchange market, distorts demand-supply dynamics, and undermines policy measures designed to stabilize the cedi. It stressed that commercial banks must only process such transactions if they are “fully supported by equivalent foreign cash deposits lodged by the same institution at the Bank of Ghana.”
The regulator explained that the measure is not meant to stifle legitimate business operations but to safeguard the broader economy from volatility. In partnership with government, the central bank has already put in place mechanisms to provide adequate foreign exchange liquidity to corporates to support imports and other critical obligations.
“These measures are designed to safeguard market stability while ensuring that vital supply chains remain uninterrupted,” the statement said, adding that foreign exchange access for sectors such as petroleum supply and mineral exports will continue to be prioritized.
The BoG underscored that it remains committed to supporting the activities of large corporates, recognizing their importance in driving growth, sustaining exports, and ensuring energy security. However, it insisted that this support must be managed responsibly in a way that does not compromise stability of the local currency or encourage speculative withdrawals.
To enforce compliance, the Bank of Ghana has cautioned all commercial banks that any breach of the directive will attract strict regulatory sanctions. “We expect all banks to comply strictly with this directive and to cooperate fully with the Bank of Ghana in ensuring that available foreign exchange resources are applied efficiently and transparently,” the notice warned.
The directive is the latest in a series of policy measures by the central bank to reinforce exchange rate stability at a time when currency pressures and external financing constraints remain a challenge. By halting unbacked withdrawals, the BoG aims to prevent speculative activity, protect foreign reserves, and maintain confidence in Ghana’s financial system.
