The Bank of Ghana (BoG) has issued a new directive prohibiting commercial banks from making foreign currency (FCY) cash payments to large corporations such as Bulk Oil Distribution Companies (BDCs), mining firms, and other similar institutions, unless such withdrawals are backed by prior foreign currency cash deposits from the same entities.
The central bank, in a statement signed by Aimee V. Quashie on behalf of the Secretary, said the growing practice of FCY cash withdrawals by large corporations without corresponding deposits was placing undue pressure on the foreign exchange market and undermining efforts to maintain currency stability.
“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 BoG said.
The Bank emphasised that it remains committed to supporting the operations of large corporations, recognising their vital contribution to sustaining petroleum supply, mineral exports, and other essential economic activities. To this end, the BoG indicated that, in partnership with the government, mechanisms have been put in place to provide foreign exchange liquidity for legitimate import obligations of these companies.
“These measures are designed to safeguard market stability while ensuring that vital supply chains remain uninterrupted,” the statement added.
The central bank also warned that banks found to be in breach of the directive would face regulatory sanctions. Industry associations have been tasked to inform their members and ensure strict compliance.
