The Bank of Ghana (BoG) has issued a definitive statement to clarify its stance on foreign exchange transactions, particularly concerning over-the-counter (OTC) cash withdrawals and travel-related forex purchases. The official notice, released on May 15, 2025, unequivocally confirms the existing policy allowing OTC cash withdrawals in foreign currency from both Foreign Exchange Accounts (FEA) and Foreign Currency Accounts (FCA). This clarification comes in response to growing public speculation and potentially misleading interpretations of existing regulations, aiming to dispel any rumors suggesting imminent policy changes. The BoG emphasized that it has not considered any revisions to these established procedures and urged strict adherence by all banks and the public. This decisive communication underscores the BoG’s commitment to maintaining transparency and stability in the foreign exchange market.
The central bank’s clarification specifically addressed two key areas of public concern. Firstly, it reiterated the permissibility of OTC cash withdrawals from FEA and FCA accounts, confirming that account holders can access their foreign currency holdings directly. This counters recent public speculation suggesting restrictions on such withdrawals. Secondly, the notice reaffirmed the existing policy for individuals without FEA or FCA accounts who wish to purchase foreign currency for international travel. These individuals are permitted to purchase up to US$10,000 or its equivalent for each trip, provided they present the necessary supporting documentation, including a valid passport, visa, and confirmed travel ticket. This reiteration underscores the consistency of the BoG’s approach to facilitating legitimate foreign exchange needs for travel.
The BoG’s proactive communication also aimed to address potential confusion stemming from recent comments made by a member of its own board. Isaac Adongo, in a televised interview, suggested that banks were restricting physical dollar withdrawals to international transactions like travel or imports. While Mr. Adongo’s comments may have intended to highlight the importance of using foreign currency for its intended purpose, they inadvertently fueled public speculation about policy changes. The BoG’s official notice directly contradicts this interpretation, explicitly stating that OTC withdrawals from FEA and FCA accounts remain permissible. This swift clarification serves to correct any misinterpretations and maintain public confidence in the existing regulatory framework.
Furthermore, the central bank addressed concerns regarding the use of cheque books for FEA and FCA accounts. The notice confirmed that cheque books can continue to be issued and used for these accounts, dispelling any rumors of restrictions on this established practice. This clarification provides assurance to account holders who rely on cheques for transactions related to their foreign currency holdings. By addressing this specific point, the BoG further reinforces its commitment to maintaining stability and predictability in the foreign exchange market.
The BoG’s comprehensive notice strategically addressed several key aspects of foreign exchange transactions, leaving no room for ambiguity. By explicitly confirming the existing policies regarding OTC withdrawals, travel-related forex purchases, and the use of cheque books, the central bank effectively quelled public speculation and corrected any misinterpretations. This proactive communication served to reinforce the BoG’s commitment to transparency and its dedication to maintaining a stable and predictable foreign exchange environment. The emphasis on compliance by both banks and the public further underscores the importance of adhering to these established regulations.
In conclusion, the Bank of Ghana’s clear and concise communication effectively addresses concerns regarding foreign exchange transactions, reaffirming its existing policies. The notice underscores the permissibility of OTC cash withdrawals from FEA and FCA accounts, reiterates the procedures for travel-related forex purchases, and confirms the continued use of cheque books for these accounts. By directly addressing public speculation and correcting potentially misleading interpretations, the BoG reinforces its commitment to transparency, stability, and predictability in the foreign exchange market. This proactive approach serves to maintain public confidence and ensure the smooth functioning of foreign exchange operations within the established regulatory framework.
