Prof. Isaac Boadi, Dean, College of Accounting and Finance, UPSA
On August 20, 2025, the Financial institution of Ghana (BoG) issued a brand new international change directive: banks might not give corporates money withdrawals in international foreign money except these corporations had already lodged equal FX deposits. On paper, this appears to be like like self-discipline. In observe, it’s financial self-sabotage.
Solely weeks earlier, each the IMF and World Financial institution issued clear, public warnings to BoG. On July 7, the IMF urged Ghana to cut back its heavy footprint within the FX market and undertake a framework that enables the cedi’s worth to be decided extra by provide and demand, not central financial institution decree. The World Financial institution adopted on August 14, stressing that Ghana should defend FX liquidity and hold very important imports, gas, medicines, uncooked supplies, flowing.
BoG has ignored each. As an alternative of loosening controls to deepen the market, it has tightened them, slicing corporates off from the FX lifelines they want.
Think about an oil importer needing $100 million. In a wholesome market, Financial institution A might supply {dollars} from Financial institution B or by way of an FX public sale. BoG would solely intervene if volatility spun uncontrolled, say the cedi sliding from GHS 16/$ to GHS 20/$ in days. Beneath the brand new rule, that importer is shut out except they’d pre-lodged the identical {dollars} prematurely, an not possible requirement that shrinks, not expands, the market.
Or take a Bulk Oil Distribution Firm (BDC) searching for $50 million for gas imports. Usually, a financial institution attracts on interbank liquidity or a BoG public sale to satisfy that want, making certain petroleum continues to circulate. Now, if the BDC lacks prior deposits, it can not withdraw FX. The chain breaks: gas shortages hit, pump costs rise, confidence evaporates.
The contradiction is stark:
IMF: Much less intervention, extra flexibility.
World Financial institution: Defend liquidity, hold imports working.
BoG: Extra intervention, much less liquidity, imports disrupted.
What message does this ship to companies and buyers? That Ghana will bend to panic, not precept. That somewhat than deepening its FX market, Ghana is retreating into administrative bans that historical past exhibits all the time backfire. In 2014, an analogous FX crackdown collapsed inside weeks, after sparking black markets and panic withdrawals.
Ghana can not afford to repeat that failure. Stability comes from transparency, predictability, and guidelines, not from shutting doorways within the face of essential industries.
The IMF and World Financial institution advised Ghana to open the FX market. BoG has slammed it shut. The consequence is not going to be stability, it is going to be shortages, black markets, and one other blow to confidence in Ghana’s financial system.
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DISCLAIMER: The Views, Feedback, Opinions, Contributions and Statements made by Readers and Contributors on this platform don’t essentially symbolize the views or coverage of Multimedia Group Restricted.
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