BoG clarifies Adongo's comments on forex withdrawals

The Bank of Ghana (BoG) has formally debunked claims suggesting an imminent ban on over-the-counter (OTC) foreign currency withdrawals, following controversial remarks made by a board member and Bolgatanga Central MP, Isaac Adongo, during a national television interview.

In an official notice dated May 15, 2025 (Notice No. BG/GOV/SEC/2025/14), the central bank reaffirmed the existing foreign exchange withdrawal policy, stating clearly that OTC cash withdrawals in foreign currency from Foreign Exchange Accounts (FEA) and Foreign Currency Accounts (FCA) remain permitted.

The BoG emphasized that it "has not contemplated reviewing these existing measures," bringing clarity to growing public confusion.

The clarification comes in the wake of Adongo’s comments on JoyNews' PM Express, where he suggested that individuals would soon be restricted from accessing dollars over the counter, except for legitimate foreign transactions.

“If you put your dollars in the bank account, it is okay. We are happy with that. You can only get dollars if indeed you are going to use them for a dollar-denominated transaction,” he asserted, hinting at a forthcoming near-blanket restriction.

Adongo defended the purported move as a mechanism to curb currency speculation and reinforce the cedi’s recent recovery.

“We’re eliminating dollar speculation through bank accounts,” he said, expressing confidence that such controls would positively impact exchange rate stability.

The cedi has indeed posted a remarkable turnaround in recent months, appreciating from GH₵15.50 per US dollar between February and April 2025 to GH₵13.10 in early May—its strongest showing in over a year.

This performance has been attributed to a combination of factors, including a strategic gold purchase agreement between state-owned Goldbod and nine mining companies, which mandates that 20% of monthly gold output be sold locally in cedis before export.

Additionally, Ghana's $2.3 billion in gold exports in January and February 2025 marked the highest two-month export total in more than a decade, injecting robust foreign exchange inflows into the economy.

Despite Adongo’s intentions, his statements drew swift rebuttals.

The Ghana Association of Bankers (GAB) released its own clarification, distancing itself from any supposed new directives.

GAB CEO John Awuah, speaking on JoyNews Prime, insisted that the banking community had received no such instruction from the BoG.

“We do not take instructions from individual board directors of the Bank of Ghana,” Awuah stated firmly.

“Our directives come from the Bank itself, under the authority of the Governor.”

He noted that while customers must justify their need for foreign currency—particularly for travel purposes—there is no blanket prohibition in effect.

BoG regulations, last updated in 2014, continue to allow non-account holders to purchase up to $10,000 per trip, provided they present a valid passport, visa, and confirmed travel itinerary.

The BoG’s reaffirmation of its foreign exchange policy is seen as a necessary intervention to prevent panic and restore public trust in official communication.