The Ghana Association of Bankers (GAB) has categorically refuted assertions made by a Bank of Ghana (BoG) board member regarding restrictions on dollar withdrawals from foreign exchange accounts. The controversy stemmed from comments made by Dr. Isaac Adongo, a BoG board member, during a television interview, where he claimed that banks were only permitting dollar withdrawals for international transactions like travel or imports, effectively barring customers from accessing their dollar holdings for local use. He suggested that customers seeking to withdraw dollars for local expenses would be provided with the equivalent amount in cedis. The GAB, however, swiftly countered this claim, emphasizing that no such directive has been issued by the central bank and that customers retain the right to withdraw their dollar holdings over the counter, provided they can provide a legitimate reason for the withdrawal.
The GAB’s Executive Director, John Awuah, clarified that banks operate under the formal, written instructions of the BoG Governor and do not take directives from individual board members, however well-intentioned their comments might be. While acknowledging Dr. Adongo’s position, Mr. Awuah stressed the importance of adhering to the official communication channels of the central bank. He reiterated that banks follow the written directives issued by the Governor and not the pronouncements of individual board members. This clarification underscores the established protocols and hierarchical structure within the banking system, where official policy emanates from the Governor and is then disseminated to commercial banks for implementation.
Mr. Awuah further elaborated on the standard banking practice of requesting supporting documentation when customers seek to purchase dollars with cedis, especially for purposes like travel or business. This process, he explained, is designed to ensure compliance with regulatory requirements and to monitor foreign exchange transactions. However, he emphasized that this procedural requirement for purchasing foreign currency should not be misinterpreted as a restriction on accessing one’s own foreign currency holdings within an existing account. Customers with dollar accounts can still withdraw their funds, subject to providing a justifiable reason, which is a standard practice in many jurisdictions to prevent money laundering and other illicit activities.
The GAB’s response serves to allay public concerns about potential restrictions on accessing foreign currency holdings. By clarifying the existing procedures and emphasizing the unchanged policy regarding dollar withdrawals, the association aims to maintain public trust and confidence in the banking system. Mr. Awuah encouraged the public to rely on official communications from the BoG for accurate information on foreign exchange matters. This advice underscores the importance of obtaining information from authoritative sources to avoid misinformation and potential confusion arising from unofficial pronouncements.
The incident highlights the importance of clear and consistent communication within the financial sector, especially when dealing with sensitive issues like foreign exchange regulations. Misunderstandings or misinterpretations of policy can lead to unnecessary anxiety and speculation in the market, potentially impacting economic stability. The GAB’s prompt and clear response served to mitigate these risks and reinforce the importance of following official channels for information dissemination.
The GAB’s clarification contributes to maintaining transparency and stability within the Ghanaian financial sector. By addressing the issue directly and reiterating the existing policies, the association reassured customers about their ability to access their foreign currency holdings. This proactive approach serves to bolster public confidence in the banking system and prevents the spread of misinformation that could potentially disrupt financial operations. The emphasis on relying on official communication from the BoG further reinforces the importance of seeking accurate information from credible sources, promoting a stable and informed financial environment.
