Bank of Ghana bans unbacked foreign currency cash payments to large corporates

The Bank of Ghana (BoG) has directed all banks to immediately halt foreign currency cash payments to large corporates unless such transactions are backed by prior deposits from the same institutions.

The Central Bank said it had observed with concern a growing trend in which Bulk Oil Distribution Companies, mining firms, and other major corporates withdrew foreign currency in cash without equivalent deposits. It warned that the practice was exerting avoidable pressure on Ghana’s foreign exchange market and undermining stability.

In a notice issued on Wednesday, August 20, the BoG stressed that banks must maintain proper documentation to verify the source of funds for every foreign currency payout.

“All banks are directed to discontinue the payment of FCY cash to Large Corporates unless such transactions are fully supported by equivalent FCY cash deposits lodged by the same institution,” the notice read, cautioning that non-compliance would attract regulatory sanctions.

The Bank, however, acknowledged the critical role of large corporates in sustaining petroleum supply, mineral exports, and other essential sectors of the economy. It assured stakeholders that, together with the government, mechanisms had been put in place to provide foreign exchange liquidity to meet legitimate import obligations.

“These measures are designed to safeguard market stability while ensuring that vital supply chains remain uninterrupted,” the statement added.

The Central Bank has urged industry associations to circulate the directive among their members and ensure full compliance.

Read the full statement below