The Bank of Ghana (BoG) has reaffirmed its commitment to maintaining financial and macroeconomic stability amid lingering market anxieties over foreig
The Bank of Ghana (BoG) has reaffirmed its commitment to maintaining financial and macroeconomic stability amid lingering market anxieties over foreign exchange fluctuations, capital adequacy among banks, and inflationary pressures.
The assurance came during the central bank’s 126th Monetary Policy Committee (MPC) press briefing held on September 17, 2025, at the Bank Square in Accra, chaired by Governor Dr. Ernest Addison.
The quarterly briefing, which followed days of intense speculation over the monetary policy direction, provided insights into the BoG’s foreign exchange management, recapitalisation plans for banks, inflation outlook, and ongoing structural reforms within the financial sector.
Recapitalisation And Regulatory Forbearance
Responding to questions on regulatory forbearance for commercial banks—particularly those struggling to meet capital adequacy requirements—the Governor explained that the central bank had granted institutions until December 2025 to finalise their recapitalisation plans.
Dr. Addison noted that a review would be undertaken at the end of the year to assess the overall financial sector health before any extension or adjustment is considered.
“Our decisions will be guided by existing conditions and the overarching goal of maintaining financial stability,” he stated, assuring the public that the BoG remains committed to preserving the integrity of the banking system.
This comes as some state-owned banks are expected to undergo recapitalisation in 2026, following similar interventions during the post-2017 banking sector reforms that led to the collapse and merger of several insolvent institutions.
Foreign Exchange Reserves And Cedi Performance
On foreign exchange reserves, the BoG Governor addressed concerns over a slight drop recorded in July 2025, clarifying that it was a “temporary dip” caused by large external payments to Independent Power Producers (IPPs), bondholders, and sovereign creditors.
“These outflows were both necessary and expected,” Dr. Addison said. “Our overall reserves remain strong, and the longer-term trend shows consistent recovery and resilience.”
He dismissed fears of forex scarcity, stressing that as of September 16, all 23 commercial banks had their import-related foreign exchange requests met.
The central bank, he said, continues to supply the market adequately under the managed floating exchange rate regime, which allows the cedi to adjust naturally to external shocks without heavy intervention.
Cedi Market Stability And Fiscal Coordination
Addressing concerns about growing reliance on the parallel market by businesses struggling to access forex, the Governor explained that Ghana’s exchange rate framework remains market-driven.
“We have not changed the managed float system. The fluctuations seen are natural market corrections,” he said.
He revealed that investigations were ongoing into companies that acquired foreign exchange for imports but failed to deliver goods into the country—a development President Mahama recently criticised.
A committee has been tasked to probe the alleged abuse and will report through the Finance Ministry upon completion.
Gold Hedging, Remittances, And Reserve Strength
The BoG also highlighted significant progress in its gold hedging programme, which forms part of Ghana’s broader strategy to stabilise foreign reserves against global commodity price volatility.
The Governor expressed optimism that the risk management framework would soon be finalised.
He attributed the nation’s strong reserve position to rising proceeds from cocoa and gold exports, and steady remittance inflows.
However, he acknowledged a “noticeable decline” in remittances in recent months, which affected interbank forex trading activity.
To reverse the trend, the BoG has introduced measures to restore remittance inflows through formal channels, working closely with Money Transfer Operators.
Regulatory Measures And Sanctions
In response to a question on the sanctions imposed on nine financial institutions, the Governor disclosed that the infractions included “offshoring” remittance inflows and using unapproved exchange rates—acts that undermine market stability.
He reiterated that compliance is non-negotiable and that the central bank will continue to enforce strict discipline to enhance transparency in the financial system.
On the issue of individuals facing challenges accessing dollars through banks, Dr. Addison clarified that the BoG’s directive restricting forex cash withdrawals applies only to large corporations, not individuals.
“When customers insist on receiving physical dollars instead of cedi equivalents, they must bear the cost of importing that cash,” he explained, adding that the central bank charges a 5% fee to banks for importing physical foreign exchange.
Inflation Outlook And Policy Direction
The inflation rate for August stood at 11.5%, slightly below the BoG’s year-end target of 11.9%.
Dr. Addison reaffirmed the central bank’s confidence in achieving its medium-term inflation goal, citing sustained disinflation and policy coordination between the fiscal and monetary authorities.
Despite a cumulative 650-basis-point reduction in the policy rate since early 2025, the BoG insists the cedi will remain stable.
“We have maintained strong liquidity management and sterilisation efforts to mitigate any impact,” Dr. Addison explained.
New Financial Frameworks
The Governor confirmed that the Virtual Assets Service Providers Bill—intended to regulate cryptocurrency and digital finance activities—is now at the Attorney General’s Department and will soon be presented to Parliament.
He also revealed progress on the non-interest (Islamic) banking framework spearheaded by Professor John Gatsi’s team, which is expected to be launched after parliamentary approval later this year.
Crackdown On Dollarisation And Speculation
Dr. Addison warned against pricing goods and services in foreign currencies, emphasising that the cedi remains the sole legal tender under the Foreign Exchange Act, 2006 (Act 723). He encouraged the public to report violators directly to the BoG.
He also addressed speculative activity in the forex market, describing it as “a natural adjustment mechanism” rather than instability.
“We are not fighting the black market per se, but we are reforming the system to make it more transparent and efficient,” he noted, adding that ongoing coordination with the Ghana Revenue Authority and Ministry of Finance aims to curb illicit forex trade linked to undeclared imports.
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