The Bank of Ghana (BoG) has dismissed reports suggesting a shortage of U.S. dollars in the economy, assuring the public and business community that there is enough foreign exchange to meet demand.
This comes amid growing concerns from traders and businesses over delays in accessing dollars, particularly from their Foreign Currency Accounts (FCAs), raising fears of a tightening forex environment.
However, sources close to the central bank told Joy Business that the current challenges are not due to a lack of foreign currency, but rather the strict enforcement of forex regulations requiring proper documentation for dollar transactions.
“Last week, someone was complaining about delays in forex transfer. We investigated, only to find out that his documentation was inadequate,” a senior BoG official explained. “We want to make sure that all these withdrawals and transfers are backed by the required and adequate documentation. The Bank of Ghana has a duty to manage Ghana’s forex reserves prudently.”
The official emphasized that commercial banks are obligated to verify documentation before processing such transactions.
“We should also understand that commercial banks will not carry out these transfers if they are not backed by the right paperwork,” the official added.
Background to the Concerns
Concerns were initially raised by the President of the Ghana Union of Traders Association (GUTA), Dr. Joseph Obeng, during the Graphic Business/Stanbic Bank Breakfast Meeting, where he highlighted the difficulties traders face in accessing dollars through the formal banking system.
The concerns have since extended beyond the trading community, with some individuals also reporting difficulties in withdrawing dollars from personal accounts.
Following engagements with the central bank, GUTA issued a statement confirming that the BoG had assured it of sufficient forex availability. The central bank also pledged to engage commercial banks to better understand and resolve any delays or bottlenecks.
GUTA has since called on its members and the broader business community to remain calm as these discussions continue.
Banks Warn Against Large Over-the-Counter Withdrawals
Meanwhile, the Ghana Association of Banks has launched its own investigation into the issue. Its Chief Executive Officer, John Awuah, said the findings would be shared with the public in the coming days.
Speaking on PM Express Business Edition, Mr. Awuah also cautioned against large over-the-counter withdrawals of U.S. dollars, noting that such practices are not consistent with global banking norms.
“We should understand that the dollar is not our currency, and any time one wants to withdraw, that has to be justified,” he stated.
He added that commercial banks are well-positioned to facilitate foreign exchange transactions on behalf of businesses without requiring physical cash withdrawals.
“Go to countries like Ivory Coast, and you cannot withdraw something like US$2,000 over the counter,” he pointed out.
The BoG and banking sector leaders continue to emphasize that the formal banking system remains the safest and most efficient channel for all foreign exchange transactions
