The Bank of Ghana (BoG) has issued a new directive instructing commercial banks to halt the payment of foreign currency cash to large corporates unless such payments are fully backed by deposits.

This move, which takes immediate effect, is expected to reshape the dynamics of Ghana’s foreign exchange market and bring stability to the cedi.

To understand the broader implications of this decision, The Vaultz News engaged Ms. Gifty Annor-Sika Asantewah, President of Women in Forex Ghana, who shared her expert analysis on the move and its likely outcomes.

According to the BoG, certain large corporates—including bulk oil distributors and mining firms—had developed a practice of withdrawing foreign currencies not directly funded by prior deposits. This, the central bank argued, exerted unnecessary pressure on the forex market and undermined stability.

Ms. Asantewah agreed with the regulator’s concerns, stressing that the directive was long overdue.

“For years, we have seen bulk oil distributors, mining firms, and other large corporates accessing foreign currency directly from banks without necessarily lodging equivalent foreign deposits. That practice effectively meant that banks were drawing heavily from forex reserves and market liquidity to meet these demands.

“By stopping this, the BoG is essentially plugging a loophole that undermined the sustainability of our forex market.”
Ms. Gifty Annor-Sika Asantewah

Reducing Artificial Demand for Forex

The directive, Ms. Asantewah said, would have an immediate cooling effect on the forex market by reducing speculative withdrawals.

“The immediate effect will be a reduction in the artificial demand for forex. If you are a corporate, you can only access forex cash if you have deposited the same amount beforehand. This forces institutions to plan their cash flow more carefully and discourages speculative withdrawals.”
Ms. Gifty Annor-Sika Asantewah

She added that forex demand should be based on actual business needs, not opportunistic or speculative activities.

“The foreign exchange market thrives on confidence and balance. When large corporates hoard forex or access it without matching deposits, it distorts the system. This directive should stabilize liquidity, reduce exchange rate spikes, and promote more predictable forex flows.”
Ms. Gifty Annor-Sika Asantewah

Boosting Confidence in the Cedi

The cedi has faced persistent depreciation pressures in recent years, largely due to demand-supply mismatches in the forex market. Ms. Asantewah believes this directive could help restore confidence in the currency.

“The cedi’s weakness is often linked to pressure on our forex reserves and demand-supply mismatches. With this directive, speculative pressures are reduced, meaning the BoG can better manage its reserves.”
Ms. Gifty Annor-Sika Asantewah

She further highlighted that market sentiment often drives currency strength as much as economic fundamentals.

“When market participants see that the central bank is taking decisive action to protect forex stability, confidence in the cedi rises. It won’t magically make the cedi stronger overnight, but over time, this measure—combined with government interventions to provide forex liquidity for legitimate imports—will reduce volatility.”
Ms. Gifty Annor-Sika Asantewah

Addressing Business Concerns

While some corporates may view the new rules as restrictive, Ms. Asantewah emphasized that the long-term benefits far outweigh any short-term inconveniences.

“Businesses always want easy access to liquidity, but that convenience should not come at the expense of market stability. The BoG has also made it clear that it will support legitimate imports by providing forex through official channels.”
Ms. Gifty Annor-Sika Asantewah

She argued that corporates would ultimately benefit from a more stable exchange rate environment.

“This is about balancing the needs of businesses with the need to protect the economy. Without stability, the very same corporates would face higher costs of operations due to exchange rate volatility.”
Ms. Gifty Annor-Sika Asantewah

Wider Economic Implications

Beyond the immediate forex market, Ms. Asantewah stressed that the directive signals discipline and credibility in Ghana’s economic management.

“In the bigger picture, this is about restoring discipline in financial markets. It signals to international investors and domestic players that Ghana is serious about managing its currency and reserves.”
Ms. Gifty Annor-Sika Asantewah

She also tied the move to inflationary control and investor confidence.

“If sustained, this policy could contribute to slowing inflation because a more stable cedi means imported goods and services won’t fluctuate wildly in price. It also builds investor confidence, which is crucial for attracting portfolio and direct investments into the economy.”
Ms. Gifty Annor-Sika Asantewah

Asked whether the policy could be sustained over time, Ms. Asantewah was optimistic but stressed the need for strict enforcement.

“Absolutely—provided enforcement is strict. Policies like these only work if banks comply and if there are clear consequences for breaches. Over the long term, it must be paired with strategies to boost forex inflows—through exports, remittances, and investments.

“But as a short-to-medium-term intervention, this is a smart move by the BoG, and I believe it will help in stabilizing the cedi and restoring discipline in the forex market.”
Ms. Gifty Annor-Sika Asantewah

The Bank of Ghana’s directive halting unfunded foreign currency cash payments to large corporates marks a decisive step in restoring discipline to the forex market. By reducing artificial demand and speculative withdrawals, the measure is expected to ease pressure on the cedi and build investor confidence.

As Ms. Gifty Annor-Sika Asantewah concluded, “This is not just about forex availability; it is about ensuring discipline, transparency, and sustainability in our financial system. The long-term benefits will be felt by both businesses and the wider economy.”