Bank of Ghana Bans Unsupported Dollar Payouts to Corporates to Stabilize Forex Market

The Bank of Ghana (BoG) has issued a new directive prohibiting banks from allowing large corporates to withdraw foreign currency in cash unless such payouts are backed by equivalent deposits. The move is aimed at easing pressure on the country’s foreign exchange (FX) reserves and stabilizing the cedi.

The central bank noted that some companies, especially bulk oil distributors and mining firms, had increasingly been accessing cash dollar withdrawals without supporting inflows. According to the BoG, this practice has been draining forex liquidity and undermining monetary stability efforts.

To curb this trend, the regulator has mandated all banks to ensure strict compliance by documenting the source of funds for every foreign currency transaction. Failure to adhere to the new rule will attract regulatory sanctions, the bank warned.

Despite the tighter restrictions, the BoG emphasized its continued support for key sectors of the economy, including petroleum supply and mineral exports. It reassured businesses that legitimate forex requirements for imports and operational needs will be met through established channels.

The central bank also disclosed that it is working closely with the government to strengthen mechanisms that guarantee forex availability for essential corporate transactions. By targeting unsupported payouts, officials say the policy will boost transparency in the FX market and reduce speculative pressure on the cedi.

Source: Citi newsroom