BoG bars cash dollar payments to big firms without prior deposits

The Bank of Ghana has directed banks to immediately stop the practice of paying foreign currency (FCY) cash to large corporates such as bulk oil distribution companies and mining firms unless such withdrawals are backed by equivalent FCY cash deposits.

The directive marks the latest in a series of measures by the central bank aimed at tightening the management of foreign exchange flows to preserve macroeconomic stability.

In a notice dated August 20, 2025, the central bank said it had observed with concern the increasing trend of foreign currency cash withdrawals by major corporates that are not directly funded by prior deposits, warning that the practice puts avoidable pressure on the foreign exchange market and undermines stability efforts.

“Accordingly, with immediate effect, all banks are directed to discontinue the payment of FCY cash to Large Corporates unless such transactions are fully supported by equivalent FCY cash deposits lodged by the same institution,” the BoG stated.

It further instructed banks to maintain proper documentation to verify the source of funds for every payout.

The central bank assured that it remains committed to supporting the operations of large corporates, noting their critical role in sustaining petroleum supply, mineral exports, and other essential sectors of Ghana’s economy.

It said mechanisms have been put in place, in partnership with the government, to provide foreign exchange liquidity to meet legitimate import obligations of such firms.

“These measures are designed to safeguard market stability while ensuring that vital supply chains remain uninterrupted,” the notice said.

The BoG cautioned that any banks that fail to comply will face regulatory sanctions and called on relevant industry associations to sensitise their members to ensure adherence.