BoG bans unsupported FX withdrawals by big corporates to protect cedi stability

The Bank of Ghana (BoG) has issued a sweeping directive to banks, barring large corporates from withdrawing foreign currency cash unless such transactions are fully backed by equivalent deposits.

The central bank says the practice—prevalent among bulk oil distributors and mining companies—has been draining foreign exchange liquidity and threatening its efforts to stabilise the cedi.

“This practice exerts avoidable pressure on the foreign exchange market and undermines efforts to ensure stability. Accordingly, with immediate effect, 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. Banks must retain proper documentation to confirm the source of funds for every payout,” the Bank of Ghana stated.

The new rule, effective immediately, requires banks to provide documentation for every foreign currency payout. Any breach, the BoG warned, will trigger strict regulatory sanctions.

While enforcing the restriction, the central bank assured that critical sectors would not be starved of forex. It said petroleum imports, mineral exports, and other strategic industries would continue to benefit from existing mechanisms designed in partnership with government to guarantee legitimate access to foreign exchange.

“These measures 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 cooperate fully with the Bank of Ghana in ensuring that available foreign exchange resources are applied efficiently and transparently. Non-compliance will attract appropriate regulatory sanctions,” the statement concluded.

The move underscores the BoG’s determination to curb speculative pressure on the cedi and enforce discipline in Ghana’s forex market at a time of heightened currency volatility.