IMF flags multiple currency practices as a constraint on Ghana’s FX Market

The International Monetary Fund (IMF) has cautioned that Ghana continues to operate measures resulting in multiple currency practices (MCPs), which could hinder the growth and efficiency of the country’s foreign exchange (FX) market.

In its latest Staff Report on Ghana, the IMF identified several factors sustaining these MCPs. These include the use of prior-day Bank of Ghana (BoG) reference rates with additional fees for direct FX transactions with the government, as well as similar arrangements applied to cocoa-related FX surrender requirements.

The Fund also highlighted the BoG’s mandate for banks to use Bloomberg’s opening regional bid rate for inward remittances, alongside exchange rates derived from multiple-price forward US dollar auctions and single-price forward FX auctions conducted to supply dollars to Bulk Oil Distribution Companies (BDCs).

Unauthorized spreads linked to these practices were noted on several occasions in 2025, including October 16 for inward remittances, October 15 for FX dealings between the BoG and the government, September 3 for cocoa export FX surrender requirements, August 28 for multiple-price forward auctions, and April 24 for FX purchases from extractive firms.

“These MCPs are likely to create economic distortions and impede FX market development. The government and central bank authorities have reiterated their commitment to eliminating the remaining MCPs through reforms recommended by Fund staff,” the report stated.

The IMF’s observations underscore the need for continued reforms to ensure a more transparent, efficient, and stable foreign exchange market in Ghana.