Banks begin 5% charge on foreign currency withdrawals

By Praisebell Rosemond Larbi

Commercial banks across Ghana have begun implementing a 5 per cent charge on specific foreign currency cash withdrawals, in compliance with a new directive from the Bank of Ghana (BoG) aimed at tightening oversight of foreign exchange flows.

Several banks sent SMS notifications to their customers on 11 September 2025, stating: “In line with BoG guidelines, there is a 5 per cent withdrawal fee effective immediately.”

The message clarified that the charge applies to foreign currency accounts funded by transfers or cheque deposits, while accounts funded with physical cash deposits remain exempt.

The measure stems from the BoG’s “Revised Charges and Reporting Requirements on Foreign Currency Cash Transactions” circular, issued to commercial banks on 27 August 2025 and effective 25 August 2025.

According to the letter, a 5 per cent fee will be levied on all foreign currency cash withdrawals drawn from account balances not funded with physical cash.

Withdrawals made from foreign currency physically deposited into accounts will continue to enjoy full exemption from the charge, allowing depositors to access their own cash without extra cost.

The directive also introduces stringent reporting requirements. Commercial banks must now submit a utilisation report to the BoG for every foreign currency cash withdrawal not backed by physical cash deposits.

These reports must detail the purpose and actual usage of the withdrawn funds.

For banks seeking to import foreign currency cash, the central bank requires prior notification specifying the purchase of the foreign cash, as well as a post-importation utilisation report explaining how the funds were applied.

While the BoG has not publicly detailed the reasons behind this policy, analysts believe it forms part of the regulator’s broader strategy to curb foreign exchange leakages, improve monitoring of forex transactions and stabilise the cedi amid persistent depreciation pressures.

Some industry watchers view the directive as a move to discourage speculative demand for foreign currency, ensuring that non-cash foreign currency inflows such as wire transfers are properly tracked and used for legitimate purposes like trade or investment.

Bank customers and businesses that frequently withdraw forex for imports or overseas payments are expected to feel the immediate impact, as the 5 per cent charge raises the cost of accessing foreign currency from transfers or cheques.

The BoG, however, has signalled that physical cash deposits remain untouched, assuring depositors that funds they directly place in foreign currency accounts will remain fully accessible without additional fees.