KEY POINTS
- Ghana’s central bank retains existing forex withdrawal limits, allowing $10,000 for travel with documentation but avoiding broader reforms to address dollar shortages.
- The cedi’s depreciation and declining reserves highlight tensions between policy stability and economic pressures, with SMEs increasingly reliant on informal forex markets.
- Experts warn that maintaining the status quo risks prolonging liquidity crises, urging reforms to boost export earnings and attract diaspora investments.
The Bank of Ghana (BoG) has reaffirmed its policy permitting cash withdrawals in foreign currencies from Foreign Exchange Accounts (FEA) and Foreign Currency Accounts (FCA), a move analysts say aims to stabilize dollar liquidity while curbing black-market speculation.
In a statement issued on Thursday, the central bank clarified that individuals without FEA/FCA accounts can still purchase up to $10,000 (or its equivalent) for international travel, provided they present valid travel documents, including visas and confirmed tickets.
“The Bank has not contemplated reviewing these existing measures,” emphasized BoG Secretary Sandra Thompson, referencing guidelines under the Foreign Exchange Act of 2006. The rules, unchanged since 2014, allow cheque withdrawals on forex accounts but cap travel-related forex access to deter capital flight.
Bank of Ghana addresses speculations
Ghana Business News reports that the BoG’s clarification comes in response to public debates and comments suggesting a tightening of foreign exchange regulations. Notably, Isaac Adongo, Member of Parliament for Bolgatanga Central and a Board Member of the Bank of Ghana, had indicated that the central bank was planning to intensify restrictions on OTC dollar withdrawals to help stabilize the Ghana cedi.
However, the BoG’s official position contradicts these claims. The central bank stated, “The Bank has not contemplated reviewing these existing measures and all banks and the public are advised to take note and comply accordingly.”
Additionally, the BoG confirmed that cheques and cheque books may continue to be issued on FEA and FCA accounts, indicating no changes to current cheque issuance practices.
This announcement aims to dispel rumors and provide clarity to the public and financial institutions regarding the central bank’s policies on foreign exchange withdrawals. The BoG urges all stakeholders to adhere to the existing regulations and remain informed through official communications.
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