The Bank of Ghana (BoG) has rejected reports of a dollar shortage in the economy, assuring the public and business community that there is sufficient foreign exchange supply to meet market demand.
The central bank’s response follows growing concerns from some traders and businesses about delays in accessing dollars for transactions, particularly from their Foreign Currency Accounts.
However, persons close to the BoG have told Joy Business that the current challenges stem not from a lack of foreign exchange, but from strict enforcement of existing foreign exchange laws requiring full documentation for dollar transactions.
A senior official at the BoG explained: “Last week, someone was complaining about delays in forex transfer. We investigated, only to find out that his documentation was inadequate. 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 stated.
The source further stressed that commercial banks cannot process forex transactions without proper paperwork.
“We should also understand that commercial banks will not carry out these transfers if they are not backed by the right documentation,” the official added.
Background to the Concerns
The President of the Ghana Union of Traders Association (GUTA), Dr Joseph Obeng, first raised the issue at the Graphic Business/Stanbic Bank Breakfast Meeting, citing difficulties traders face in accessing dollars from banks.
These concerns have since extended beyond the business community, with some individuals also claiming challenges in withdrawing dollars from their personal accounts.
Following engagements with the Bank of Ghana, GUTA has since issued a statement confirming that the central bank has reassured traders of adequate forex availability. The BoG also promised to engage commercial banks to understand and resolve the perceived shortages.
GUTA has urged its members and the broader business community to remain calm as discussions continue.
Banks Caution Against Large Over-the-Counter Withdrawals
Meanwhile, the Chief Executive of the Ghana Association of Banks, John Awuah, says the association has launched its own investigation to understand the situation. Speaking on PM Express Business Edition, Mr Awuah indicated the findings would be shared with the public in the coming days.
He also advised against large over-the-counter withdrawals of dollars, citing global best practice.
“We should understand that the dollar is not our currency and any time one wants to withdraw, that has to be justified,” he said.
According to him, commercial banks are always positioned to facilitate dollar transactions on behalf of businesses without the need for physical cash withdrawals.
“Go to countries like Ivory Coast and you cannot withdraw something like US$2,000 over the counter,” he observed.
The central bank and banking sector leaders have reiterated that the formal banking system remains the safest and most efficient channel for forex transactions.
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