The Financial institution of Ghana (BoG) has ordered banks to cease giving out overseas forex money to massive corporates until the withdrawals are backed by equal deposits.
In keeping with the central financial institution, it has develop into involved in regards to the growing follow the place firms, akin to Bulk Oil Distribution Corporations and mining corporations, withdraw massive quantities of overseas forex with out first depositing money in the identical forex.
It stated this follow places strain on the overseas change market and impacts efforts to stabilize the cedi.
The brand new directive, which takes fast impact, requires that banks solely launch overseas forex money to firms if the funds are totally supported by prior deposits from the identical establishment.
Banks are additionally anticipated to maintain correct data to show the supply of funds for each transaction.
The BoG assured that it stays dedicated to supporting massive corporates due to their important function in petroleum provide, mineral exports, and different key sectors of the financial system.
It defined that, in partnership with the Authorities, measures have been put in place to offer sufficient overseas change liquidity to satisfy the real import wants of those firms.
The central financial institution warned that any financial institution that fails to adjust to the directive will face regulatory sanctions. It additionally urged trade associations to tell their members and guarantee they comply with the directive.
By: Jacob Aggrey
