BoG orders banks to halt unbacked USD payouts to corporates

The Bank of Ghana (BoG) has ordered commercial lenders to stop making foreign currency cash payouts to large corporates unless such withdrawals are fully backed by prior deposits, in a move aimed at protecting the cedi and preserving reserves.

The directive targets bulk oil distribution companies, mining firms, and other large corporates that the central bank said have increasingly withdrawn dollar cash without equivalent deposits. The regulator warned that such practices exert avoidable pressure on the market and undermine recent efforts at ensuring stability.

“The Bank of Ghana has observed with concern the growing practice of foreign currency (FCY) cash withdrawals by Large Corporates (e.g., Bulk Oil Distribution Companies, mining companies, and other similar actors) that are not directly funded by prior FCY cash deposits. This practice exerts avoidable pressure on the foreign exchange market and undermines efforts to ensure stability,” the apex bank said in a statement.

“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. Banks must retain proper documentation to confirm the source of funds for every payout,” it added.

The order comes even as the external position has improved markedly this year. The country posted a record current account surplus of US$3.4 billion in the first half of 2025, driven by strong gold and cocoa exports. Reserves rose to US$11.1 billion by end-June, covering 4.8 months of imports, compared with US$8.9 billion at the end of 2024. The cedi has rallied 40.7 percent against the US dollar so far this year, making it one of Africa’s best-performing currencies.

Despite these gains, the central bank said tighter oversight was necessary to ensure forex inflows are efficiently applied. Banks must now keep full documentation on all dollar cash payouts, and any non-compliance will attract sanctions.

The move, analysts say, underscores the delicate balance policymakers face in managing reserves while keeping vital supply chains running.

At the same time, oil distributors and mining companies remain central to the economy. The BoG said it would continue to provide liquidity for legitimate import needs, working with the government to ensure that petroleum supplies and mineral exports are not disrupted.

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

Analysts see the directive as a preemptive step to lock in recent currency gains and limit leakages in forex management. Still, corporates may face tighter cash management requirements, with oil importers particularly exposed if dollar access becomes constrained.

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