Markets Must Play by the Rules – BoG Governor Defends Tough Oversight Measures
By Praisebell Rosemond Larbi
Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has strongly defended a raft of tough new regulatory measures in the financial sector, stressing that they are not intended to stifle market activity but to safeguard integrity and restore discipline.
Addressing concerns from some market players that the central bank may be overreaching, Dr. Asiama rejected suggestions that the BoG was “using a sledgehammer to kill a housefly.” Instead, he argued that the measures were necessary to plug loopholes that have long undermined the efficient functioning of Ghana’s financial markets.
“If you go to every country South Africa, Kenya, or any of our peers markets are regulated. The question is the extent to which you regulate them, especially when certain practices compromise their efficiency. As a regulator, you fix those loopholes. That is exactly what we are doing,” he explained.
One of the most contentious measures involves restrictions on large foreign currency cash withdrawals from corporate accounts. According to Dr. Asiama, the directive was prompted by alarming findings from recent investigations.
“For example, we found some corporates who earn money through export proceeds and deposit it in their foreign currency accounts, only to withdraw in huge amounts. Imagine a corporation seeking to withdraw $10 million over the counter. What do they use that for? Their payments are abroad they don’t carry cash to settle such obligations,” he queried.
He stressed that corporates must transact through proper banking channels, while ordinary individuals would still be able to access modest sums without difficulty. “For you and me, if you need a few hundred dollars, that is understandable. You can negotiate with your bank and take a decision that suits you.”
The governor further dismissed claims that the BoG was acting under political or external pressure. “No, not at all. It is like a soccer match there are rules within which the game must be played. That’s exactly what we are enforcing.”
He disclosed that intelligence reports revealed worrying patterns of illicit cash movements. “We found instances of people carrying over a million dollars out of Ghana without declaring them. These are leakages that undermine the economy. Our role, together with GRA and other regulators, is to ensure accountability and transparency. This also strengthens the fight against money laundering.”
According to him, the new rules represent a redefined framework to ensure transparency, efficiency, and stability. “We are simply setting clearer boundaries within which the markets must function. These are measures that should have been enforced long ago.”
Dr. Asiama emphasized that banks were not blindsided by the reforms. “We met with the CEOs of banks several times and incorporated their feedback. That is why you don’t hear complaints from the banks. We are confident these measures will help restore trust and order in the system.”
