The Bank of Ghana (BoG) has moved to tighten control of the foreign exchange market, directing banks to stop Foreign Currency (FCY) cash withdrawals by large corporates unless backed by equivalent deposits.

The central bank says the growing practice, particularly among bulk oil distributors and mining companies, has been draining FX liquidity and undermining efforts to stabilise the cedi.

Under the new rule, all banks must provide documentation confirming the source of funds for every foreign currency payout.

“This practice exerts avoidable pressure on the foreign exchange market and undermines efforts to ensure stability. 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”, a statement from the Central Bank noted.

Non-compliance will attract regulatory sanctions.

The BoG, however, assured that it remains committed to supporting the operations of critical sectors such as petroleum supply and mineral exports.

It noted that, in partnership with government, mechanisms are already in place to provide forex liquidity for legitimate import obligations of large corporates.

“These measures are designed to safeguard market stability while ensuring that vital supply chains remain uninterrupted. We expect all banks to comply strictly with this directive and to cooperate fully with the Bank of Ghana in ensuring that available foreign exchange resources are applied efficiently and transparently. Non-compliance will attract appropriate regulatory sanctions”, the release concluded.