Bank of Ghana Bans Unbacked Foreign Currency Cash Payments to Large Corporates

The Bank of Ghana (BoG) has directed all banks to immediately discontinue the practice of making foreign currency (FCY) cash payments to large corporates that are not backed by equivalent FCY cash deposits.

In a statement signed by Aimee V. Quashie, on behalf of the Secretary, the central bank said it had observed a growing trend where institutions such as Bulk Oil Distribution Companies, mining firms, and other large corporates were withdrawing foreign currency cash without prior deposits.

According to the BoG, this practice puts avoidable pressure on the foreign exchange market and undermines ongoing efforts to stabilize the cedi.

“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,” the directive stated.

The central bank emphasized that banks must maintain proper documentation to confirm the source of funds for every foreign currency payout.

While acknowledging the critical role of large corporates in petroleum supply, mineral exports, and other vital sectors, the BoG assured that mechanisms had been put in place—together with government—to ensure access to foreign exchange liquidity for legitimate import needs.

“These measures are designed to safeguard market stability while ensuring that vital supply chains remain uninterrupted,” the statement added.

The BoG warned that non-compliance with the directive would attract regulatory sanctions and urged relevant industry associations to notify their members and ensure adherence.