BOG Introduces New Guidelines For Foreign Currency Withdrawals

BoG directs Banks to discontinue payment of FCY cash to large corporations that do not have supporting equivalent prior cash deposits.

The Bank of Ghana (BoG) has observed with concern the growing practice of foreign currency (FCY) cash withdrawals by Large corporations that are not directly funded by prior FCY cash deposits. The BoG noted that the practice by such bulk oil distribution companies, mining companies, and other similar actors within the space exerts avoidable pressure on the foreign exchange market and also undermines efforts to ensure stability.

Accordingly, with immediate effect, all banks are directed to discontinue the
payment of FCY cash to Large Corporations, unless such transactions are fully
supported by equivalent FCY cash deposits lodged by the same institution.
Banks, the statement said, must also retain proper documentation to confirm the source of funds for every payout.

The statement issued by the Bank and signed by Ms. Aimee V. Quashie on behalf of the Secretary assured that the Bank of Ghana remains committed to supporting the operations of large corporations, recognizing their critical role in sustaining petroleum supply, mineral exports, and other essential sectors of Ghana’s economy.

She also disclosed that the Bank, in partnership with the Government, has put in place mechanisms to source and provide foreign exchange liquidity to meet legitimate import obligations of Large corporations. These measures, she explained, are designed to safeguard market stability while ensuring that vital supply chains remain uninterrupted.

‘We expect all banks to comply strictly with this directive and to co-operate fully with the BoG in ensuring that available foreign exchange resources are applied efficiently and transparently, ’ the statement emphasized, adding that non-compliance would attract appropriate regulatory sanctions.

The statement requested all the relevant industry associations to bring this directive to the notice and attention of their members and accordingly ensure their adherence.