Dr. Johnson Asiama
The Bank of Ghana (BoG) has dismissed claims that it is planning to prohibit over-the-counter (OTC) foreign exchange withdrawals, saying no changes have been made to the current regulations.
In a public notice dated Thursday, May 15, the central bank stated emphatically that cash withdrawals in foreign currency from Foreign Exchange Accounts (FEA) and Foreign Currency Accounts (FCA) remain permitted, as per existing rules.
“For non-FEA and non-FCA account holders, forex purchases for travel outside Ghana are allowed but capped at US$10,000 or its equivalent per person per trip,” the BoG said.
These transactions must be backed by a valid passport, visa, and a confirmed travel ticket, in line with BoG Notice BG/GOV/SEC/2014/09. The notice also confirmed that cheques and cheque books may continue to be issued on both FEA and FCA accounts.
“The Bank has not contemplated reviewing these existing measures,” the statement emphasised, in an apparent response to mounting speculation and commentary in the public domain.
This clarification comes after comments by Member of Parliament (MP) for Bolgatanga Central and BoG board member, Isaac Adongo, sparked widespread confusion and concern among account holders.
Speaking on Joy News, Mr. Adongo claimed the government and the central bank are preparing to introduce a law that would effectively block people from withdrawing foreign currency they deposit into their bank accounts, unless for very specific purposes.
“If you put your dollars in the bank account, it is okay. We are happy with that. You can only get dollars if you are going to use them for a dollar-denominated transaction,” he said.
According to him, the upcoming law will enforce a near-blanket ban, with the BoG supplying cedis instead of dollars in most cases. He framed it as part of the Mahama-led NDC administration’s broader strategy to stabilise the local currency, the cedi.
“We are eliminating dollar speculation through bank accounts. Deposited dollars will only be released for legitimate foreign transactions—dollars are meant for spending abroad, not domestically,” he added.
Mr. Adongo insisted the measure will help sustain the cedi’s recent appreciation, which saw it strengthen from around GH₵15.50 to the US dollar between February and April 2025 to about GH₵13.10 in early May—its strongest in a year.
Some analysts have credited the appreciation to a combination of factors, including the government’s export performance and a new agreement between Goldbod and nine mining firms, which secured 20% of their monthly gold output (approximately 200kg) for domestic purchase using cedis.
Ghana recorded over $2.3 billion in gold exports between January and February 2025—the highest two-month total in more than a decade.
Currency strength has also been recorded across other foreign denominations: the pound sterling fell from GHS20.60 to GHS17.45, the euro from GH₵17.72 to GH₵14.78, and the Canadian dollar from GH₵11.00 to GH₵9.40 over the same period.
Despite these gains, Mr. Adongo’s comments drew criticism from the banking community, particularly from the Ghana Association of Bankers (GAB).
GAB Chief Executive, John Awuah, pushed back firmly, saying no such directive has been issued to banks.
“I can say on authority that, as a community of banks, we have not received any directive that bars over-the-counter withdrawal of USD or any other foreign currency,” Mr. Awuah said.
He further cautioned against misinterpretation of policy direction, adding that banks do not take instructions from individual BoG board members.
“With all due respect to Mr. Isaac Adongo, we do not take instructions from board directors. Our directives come from the Bank of Ghana under the authority of the Governor,” he reiterated.
While Mr. Awuah acknowledged that justification is often required to access foreign currency, he was clear, “There is no blanket prohibition.”
By Charles Takyi-Boadu