, has described as “draconian and regressive” the Bank of Ghana’s new directive restricting foreign currency (FCY) cash payments to large corporations.){kind=link}
Policy think-tank, the Africa Policy Lens (APL), has described as “draconian and regressive” the Bank of Ghana’s new directive restricting foreign currency (FCY) cash payments to large corporations.
The central bank, in a statement on Thursday, August 21, 2025, announced that it had observed a growing trend of FCY cash withdrawals by Bulk Oil Distribution Companies (BDCs), mining firms, and other large corporates without prior FCY cash deposits. According to the Bank, this practice places avoidable pressure on Ghana’s foreign exchange market and undermines stability efforts.
To address this, the BoG instructed all banks to discontinue FCY cash payments to such institutions unless supported by equivalent FCY cash deposits lodged by the same corporation. The directive, which takes immediate effect, also requires banks to keep documentation verifying the source of funds for all FCY transactions.
The BoG emphasized that the move was not intended to cripple businesses but rather to safeguard market stability. It added that mechanisms have been established in partnership with the government to source and provide foreign exchange liquidity for legitimate import obligations, particularly for petroleum and mineral exports.
However, APL has sharply criticized the measure, warning that it could have grave consequences for the economy.
“To say that banks should discontinue the payment of foreign currency to critical corporations such as Bulk Oil Distribution Companies, mining companies amongst others, if these bodies do not lodge foreign cash deposits or the same with their respective banks, shows a lack of thought and disregard for the operationalization of firms and the welfare of the Ghanaian people at large,” APL said in a statement.
The policy think tank questioned the practicality of the directive, arguing that most of these companies do not generate their revenues in foreign currency. It asked how such firms, particularly oil distributors, were expected to lodge foreign deposits before accessing forex to import products.
APL further suggested that the directive risks pushing corporates to rely on the black market, which could worsen exchange rate volatility.
“This clearly shows that the BoG has lost touch with its mandate! Is the BoG, by its directive, encouraging BDCs and mining firms to transact in the black market? If so, then where lies the sustainability of the local currency that the directive seeks to echo?!” the statement added.
The think tank argued that the central bank appeared more focused on maintaining a cosmetic exchange rate than implementing sustainable measures to strengthen the cedi. It warned that if indeed the exchange rate is market-determined, as the BoG Governor has often insisted, then such directives are unnecessary.