On August 20, 2025, the Bank of Ghana (BoG) issued a new foreign exchange directive: banks may not give corporates cash withdrawals in foreign currency unless those firms had already lodged equivalent FX deposits. On paper, this looks like discipline.
In practice, it is economic self-sabotage.
Only weeks earlier, both the IMF and World Bank issued clear, public warnings to BoG. On July 7, the IMF urged Ghana to reduce its heavy footprint in the FX market and adopt a framework that allows the cedi’s value to be determined more by supply and demand, not central bank decree.
The World Bank followed on August 14, stressing that Ghana must protect FX liquidity and keep vital imports, fuel, medicines, raw materials, flowing.
BoG has ignored both. Instead of loosening controls to deepen the market, it has tightened them, cutting corporates off from the FX lifelines they need.
Consider an oil importer needing $100 million. In a healthy market, Bank A could source dollars from Bank B or through an FX auction. BoG would only intervene if volatility spun out of control, say the cedi sliding from GHS 16/$ to GHS 20/$ in days. Under the new rule, that importer is shut out unless they had pre-lodged the same dollars in advance, an impossible requirement that shrinks, not expands, the market.
Or take a Bulk Oil Distribution Company (BDC) seeking $50 million for fuel imports. Normally, a bank draws on interbank liquidity or a BoG auction to meet that need, ensuring petroleum continues to flow. Now, if the BDC lacks prior deposits, it cannot withdraw FX. The chain breaks: fuel shortages hit, pump prices rise, confidence evaporates.
The contradiction is stark:
IMF: Less intervention, more flexibility.
World Bank: Protect liquidity, keep imports running.
BoG: More intervention, less liquidity, imports disrupted.
What message does this send to businesses and investors? That Ghana will bend to panic, not principle.
That rather than deepening its FX market, Ghana is retreating into administrative bans that history shows always backfire. In 2014, a similar FX crackdown collapsed within weeks, after sparking black markets and panic withdrawals.
Ghana cannot afford to repeat that failure. Stability comes from transparency, predictability, and rules, not from shutting doors in the face of critical industries.
The IMF and World Bank told Ghana to open the FX market. BoG has slammed it shut. The result will not be stability, it will be shortages, black markets, and another blow to confidence in Ghana’s economy.
Source: Prof. Isaac Boadi, Dean, Faculty of Accounting and Finance, UPSA
