The International Monetary Fund (IMF) has endorsed the Bank of Ghana’s (BoG) latest foreign exchange directives, describing them as a step toward strengthening the cedi’s role as the country’s sole legal tender while boosting transparency in the forex market.
At a press briefing on Thursday, September 11, 2025, IMF Communications Director, Julie Kozack said the measures align with broader efforts to safeguard financial integrity and enforce anti-money laundering (AML) standards.
“The Bank of Ghana’s latest directives are intended to reinforce the role of the cedi as the sole legal tender in the country. They’re meant to tighten controls on foreign currency transactions and to promote formal channels for the provision of remittances and trade. And these are steps toward broader financial integrity, compliance with anti-money laundering rules, and broader transparency in the FX market,” she noted.
BoG Cracks Down on Corporate FX Access
The BoG’s directive, issued on August 20, 2025, requires commercial banks to halt the practice of paying out foreign currency cash to large corporates unless such payments are fully backed by equivalent deposits.
According to the regulator, the move was designed to curb a growing trend where bulk oil distributors, mining companies, and other large firms accessed foreign exchange without prior deposits—adding unnecessary pressure to the FX market and undermining efforts to stabilize the local currency.
This policy adds to a series of interventions by the central bank over the past year, including stricter compliance checks on forex bureaux, expanded dollar auctions, and tighter monitoring of foreign currency accounts, all aimed at taming volatility in the exchange rate.
Confidence Boost for Ghana’s Recovery
Analysts say the IMF’s backing could strengthen investor and market confidence in Ghana’s currency management strategy. With currency stability seen as a cornerstone of Ghana’s ongoing economic recovery program, the endorsement signals international support for the BoG’s assertive stance on FX regulation.
Source:Citi News