The African Policy Lens (APL) has taken note of the Bank of Ghana’s (BoG) directive to banks and the public concerning foreign currency cash payments to large corporations. We strongly assert that this measure is regressive and risks inflicting serious harm on the Ghanaian economy.
- The directive suggests that the BoG is more concerned with temporarily propping up the exchange rate rather than pursuing prudent and sustainable economic measures. Instructing banks to discontinue the disbursement of foreign currency to critical entities—such as Bulk Oil Distribution Companies (BDCs) and mining firms—unless they lodge equivalent foreign cash deposits with their banks, reflects a lack of foresight and disregard for the operational realities of businesses and the welfare of the Ghanaian people.
- A critical question arises: do all these firms sell their products and services in foreign currency? If not, how does the BoG expect companies like the BDCs to make foreign deposits before requesting forex to import petroleum products from the international markets? Where exactly does the BoG expect these corporations to obtain such forex for deposits in the first place?
- This directive clearly demonstrates that the BoG has lost touch with its mandate. Is the central bank, by implication, pushing BDCs and mining companies toward transacting in the black market? If so, what becomes of the sustainability of the local currency, which this very directive claims to protect?
- Finally, if—as the Governor insists—the exchange rate is determined solely by market forces and not excessive intervention by the BoG, then the central bank has no legitimate reason to be anxious.
