BoG Tightens Forex Rules to Stabilize Cedi, Rebuild Confidence

In a significant policy shift aimed at safeguarding Ghana’s currency and strengthening its foreign exchange market, the Bank of Ghana (BoG) has rolled out a series of stringent regulatory measures targeting the foreign exchange (FX) and remittance sectors.

The reforms, which were unveiled during a meeting with the CEOs of commercial banks in Accra, are designed to plug persistent regulatory loopholes, curb malpractice, and restore public and investor confidence in the cedi—particularly in the aftermath of Ghana’s IMF-supported economic recovery programme.

According to Dr. Johnson Asiama, Governor of the Bank of Ghana, the new directives reflect the central bank’s firm resolve to clamp down on unregulated and non-transparent practices that have distorted market signals and undermined the local currency.

“We are putting an end to hidden operations in the forex and remittance space. These practices erode trust, distort exchange rates, and ultimately threaten the stability of the cedi,” he said. “We cannot allow non-compliance to undo the progress we’ve made in stabilising our economy.”

Key Focus Areas

At the core of the new policy is a crackdown on three primary infractions:

Unauthorized terminations of remittance arrangements
Foreign exchange swaps involving remittance funds
Application of exchange rates outside the BoG’s official reference bands

These practices, according to the central bank, have long operated in grey areas, allowing financial institutions and remittance operators to exploit regulatory gaps to the detriment of currency stability and public transparency.

To close these gaps, the BoG now requires all banks and their remittance partners to submit weekly reports detailing individual remittance transactions, FX credits, and the corresponding parties involved. This will give regulators deeper insight into transaction flows and enable real-time monitoring.

“This is no longer a request—it is a regulatory requirement,” Dr. Asiama stated. “The days of blind spots in Ghana’s remittance inflows are over.”

Enforcement and Accountability

The central bank is backing the new rules with a robust enforcement framework. Institutions that fail to comply risk heavy penalties, including monetary fines, suspension or revocation of licenses, and public exposure of non-compliant entities.

These actions are supported by Ghana’s financial laws, particularly the Payment Systems and Services Act, 2019 (Act 987) and the Banks and Specialised Deposit-Taking Institutions Act, 2016 (Act 930).

Importantly, the BoG has made it clear that remittance compliance is no longer just a back-office function—it is now a board-level priority. Financial institutions are being urged to invest in robust compliance systems, automate their reporting mechanisms, and ensure complete transparency in all FX-related operations.

“If you are operating in the remittance and FX space, you must comply—or you will be shut out of the system,” the Governor warned.

Sharp Decline in Remittance Flows

The introduction of these policies comes at a time when Ghana is experiencing a notable decline in remittance inflows, reportedly falling by nearly 50 percent. Analysts attribute this drop to the recent appreciation of the cedi, which has led many Ghanaians abroad to pause remittance transfers, believing their funds now carry less value in local terms.

“We’ve seen a sharp drop in what used to be a consistent flow of funds supporting family needs and community projects,” Dr. Asiama noted. “People are misinterpreting the strength of the cedi and delaying their transfers. This has had a real impact on liquidity and local development.”

Industry Concerns

While the BoG maintains that the new framework will bring greater stability and transparency to the FX market, some industry players—particularly smaller banks and fintech firms—have raised concerns about the potential burden of compliance.

Experts warn that the added reporting and system upgrades required could accelerate consolidation in the financial sector, as only institutions with sufficient capital and infrastructure will be able to meet the central bank’s standards.

Nonetheless, the BoG insists the measures are necessary for long-term economic resilience.

“This is about protecting the cedi, securing our remittance inflows, and ensuring a level playing field in the FX market,” Dr. Asiama concluded.