News Guide Africa

Tag: Bank of Ghana (BoG)

  • Cedi falls 18.5% from exchange rate low

    Cedi falls 18.5% from exchange rate low

    After a strong appreciation to peak reach around GHC10.02 to US$1.0 averagely, the Ghana cedi has broken the chain to run loose since August this year to sell at GH¢13.10 at Forex Bureaus, translating into a depreciation of 18.51 percent over less than the six weeks up to Tuesday, September 9, 2025.

    Many analysts have attributed the sharp fall to strong corporate demand and tight foreign exchange supply as the Bank of Ghana has moderated its forex liquidity injections on the foreign exchange market with supply lower than in May, June and July 2025 after the International Monetary Fund caution in previous month against excessive government intervention on the foreign exchange market.

    Market trend indicates that liquidity has been tight on the foreign exchange market as the market continues to correct itself. As of Friday, September 5, 2025, the local currency was going for c12.90 on average at the forex bureau but has since surged to GH¢13.10. However, analysts have warned this trend may continue if the forex supply is not increased.

    Instructively, Fitch Solutions had earlier revised its end-of-year forecast of the cedi-to-dollar at GH¢13.0, from its previous projection of GH¢15.5 to US$1.0, predicting a 12.9% appreciation against the US dollar in 2025.

    Consequently, President John D. Mahama has assured businesses and investors of greater currency stability, stressing that the government’s focus on fiscal discipline, prudent expenditure management and stronger macroeconomic fundamentals will provide a more predictable environment for trade and investment.

    “I believe that it is about stopping rapid depreciation of the currency. When you have steep depreciation of about like we had in 2024, 25% depreciation in the currency in the first half of the year, it makes planning difficult. And so yes, Bank of Ghana BoG has been intervening in the forex market, but they’ve withdrawn,” he said during his maiden Media Encounter last week.

    “The Cedi is making an adjustment, and I believe that it will settle at a certain rate, and we’ll make sure that any depreciation that occurs in the value of the Cedi is within a margin of about 5% per annum,” President Mahama added.

    The Cedi saw a sharp appreciation against major international currencies earlier this year but has slowed in recent weeks sparking fears over a reversal of the gains made.

    President Mahama projected that the cedi depreciation will remain moderate in the coming months, staying within a band of around 5% per annum, describing the recent currency fluctuations as part of a natural adjustment process rather than a sign of renewed instability, confirming that, the Bank of Ghana (BoG) has ceased interventions in the foreign exchange market.

    Meanwhile, the Vice Chancellor of the Methodist University of Ghana, Professor William Baah-Boateng, has welcomed the President’s acceptance of moderate depreciation as encouraging for the economy.

    “If the president aims to keep the exchange rate beyond 5% then that is excellent. Now we are doing about GH¢12. When you take 5% of GH¢12, you are looking at about 60 pesewas. So, if the cedi hovers around GHc2.60, then it is the same as stability. If we can work around that, then that is what we will all be happy about,” he explained.

    The economist also praised Ghana’s recent progress on inflation management, attributing it partly to the cedi’s appreciation and improved food supply during the ongoing harvesting season.

    “So far, we have done well when it comes to inflation because the appreciation of the cedi has contributed. Also, now we are in the harvesting season, and we have food in abundance,” he noted.

    However, he cautioned that demand for foreign exchange could rise in the coming weeks as imports surge ahead of the festive season.

    “But what we have to work on is meeting the foreign exchange demand that will come as a result of imports for the festivities. If the central bank can meet that, then we will be able to maintain it at that level,” he advised.

     

    By Adnan Adams Mohammed

  • MPC’s 126th in session; key considerations are falling inflation, currency pressures and tariff risks

    MPC’s 126th in session; key considerations are falling inflation, currency pressures and tariff risks

    The Monetary Policy Committee of the Bank of Ghana began its 126th regular meeting on Monday, September 15, 2025, with a focus on key developments shaping the economy.

    That’s a steady fall in inflation and the recent marginal slip of the cedi on the foreign exchange market.

    The meeting will review current economic conditions and set the tone for the policy direction of the central bank.

    At its last meeting in July, the Monetary Policy Committee of the Bank of Ghana cut the policy rate by 300 basis points to 25 percent. It came on the back of five consecutive months of easing inflation.

    But with consumer inflation slipping further to 11.5 percent in August, already below the year-end target of 11.9 percent, the market expects another rate cut this month, supported by favourable base effects.

    However, the Committee faces risks that could temper its policy stance.

    Global trade tensions and a potential hike in utility tariffs remain upside threats to the inflation outlook. With this in mind, the Committee may be cautious with the rate.

    On the local currency front, Governor Dr. Johnson Asiama has downplayed the recent slippage. He attributes the blips to seasonal trade pressures rather than a reversal of earlier stability gains.

    Though a tough time for the Committee, its deliberations will conclude with a press conference on Wednesday, September 17, 2025 where the policy rate decision and the central bank’s outlook for the economy will be announced.

  • IMF backs BoG’s forex enforcement measures

    IMF backs BoG’s forex enforcement measures

    As part of measures to control foreign currency exchange market, commercial banks have started enforcing a new directive from the Bank of Ghana on foreign currency withdrawals.

    The directive is coming from the Revised Charges and Reporting Requirements on Foreign Currency Cash Transactions directive from the Bank of Ghana.

    A text message sent from some of the commercial banks on 11 September 2025 informed their clients that “in line with BoG guidelines, there is a 5% withdrawal fee effective immediately”.

    It added that this is on foreign accounts funded by transfer or cheque deposits while foreign accounts funded with cash deposits are exempted.

    A letter from the Bank of Ghana to the commercial banks dated August 27, 2025, however, stated the following updates regarding foreign currency accounts effective 25 August 2025:

    A charge of 5% shall be applied to all foreign currency cash withdrawals made from account balances not funded with physical deposits.

    The letter further reminded the commercial banks that they are now required to submit a utilisation report to the Bank of Ghana for each withdrawal of foreign currency cash not funded with physical cash deposits.

    It added that “the report must clearly indicate the purchase and usage of withdrawn funds”.

    The letter to the Banks stated that following the importation, banks are also requested to submit a utilisation report to the Bank of Ghana, detailing how the imported funds were used.

    It is unclear for now what might have influenced this directive from the Bank of Ghana and whether this is part of several actions the regulator has taken to ensure that all the players abide by foreign exchange guidelines and regulations.

    This follows the International Monetary Fund’s (IMF) endorsement of the Bank of Ghana’s strict enforcement of foreign exchange regulations and guidelines.

    According to the IMF, these actions and measures are needed to “broaden financial integrity compliance with anti-money laundering rules and broader transparency in the FX [forex] market”.

    The Director of Communications at the IMF, Julie Kozack, was responding to a question posed by some journalists during a press conference in Washington DC, USA, on 11 September 2025.

    Mrs Kozack argued that these 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,” the Director of Communications at the IMF stated.

     

  • ADB MD pushes for Non-interest banking and finance

    ADB MD pushes for Non-interest banking and finance

    The Managing Director of the Agricultural Development Bank (ADB) PLC, Edward Ato Sarpong, has expressed support for the Bank of Ghana’s (BOG) non-interest banking and finance initiative, describing it as a transformative model that can empower businesses and stimulate Ghana’s economic growth.

    Mr. Sarpong noted that non-interest banking and finance offers more than a faith-based alternative to conventional banking. In his view, it is a business proposition that expands access to credit, unlocks new opportunities for enterprises, and strengthens the resilience of the economy.
    “Non-interest financing is about creating choices and ensuring inclusion,” he said.

    “It gives small and medium enterprises, the real drivers of our economy, the flexibility to grow without being constrained by traditional lending structures. This is how we create sustainable growth and open new doors for entrepreneurs,” Mr. Sarpong added.

    The ADB MD explained that non-interest products would not only provide businesses with alternative channels to raise capital but also offer individuals, especially those excluded from mainstream banking, a genuine pathway into the financial system.

    He stressed that ADB is prepared to play a leading role in the roll-out of non-interest banking and financial services, leveraging its7 strong base in Retail Banking, MSME & Commercial Banking, Agribusiness, as well as its unwavering commitment to inclusive growth and development.

    “As a Bank mandated to support national development, we are determined to lead with solutions that meet the diverse needs of Ghanaians. Non-interest banking and finance is one of the innovative tools that will help us deliver on this mandate,” Mr. Sarpong assured.
    He reaffirmed ADB’s resolve to continually innovate under its new “Beyond Banking…”u corporate positioning, noting that the Bank will remain focused on solutions that not only deliver financial services but also build prosperity across communities.

    The Bank of Ghana is engaging stakeholders towards putting in place a regulatory framework for the operationalization of non-interest banking and finance in Ghana. It is a key initiative aimed at expanding financial inclusion and creating more opportunities for wealth creation.

    A business model with huge potential to serve both faith-based communities and the broader economy.

  • BoG’s remittance oversight a stability measure, not panic response — Atuahene

    BoG’s remittance oversight a stability measure, not panic response — Atuahene

    Banking consultant Dr. Richmond Atuahene has dismissed claims that the Bank of Ghana is acting out of panic following its recent clampdown on the foreign-exchange and remittance markets.

    His remarks come as the cedi shows signs of reversing months of gains, heightening scrutiny of policy measures aimed at curbing further depreciation.

    The Central Bank last week suspended the remittance partnerships of five money transfer operators including Taptap Send, Top Connect, Remit Choice, Send App and Afriex for one month and also imposed a one-month suspension on the foreign-exchange trading license of United Bank for Africa Ghana, citing regulatory breaches.

    For banking consultant, Dr. Richmond Atuahene, remittance inflows are critical to stabilising the cedi, and the BoG’s sanctions against non-compliant operators are justified. He stressed that the measures reflect regulatory enforcement rather than panic.

    “It is not a panic reaction. Last year when they [BoG] suspended CBG [Consolidated Bank Ghana] and TapTap Send, it wasn’t a panic reaction. At that time a dollar was about GHȼ17 or GHȼ16 but today they have managed to manage it and we are talking about GHȼ12 [to a dollar] and people think it is a panic. No. Every country especially in developing world or the emerging economies where remittances play a key part of their balance of payment, it is not [panicking].

    “Those who say they [BoG] are panicking, I don’t know what they mean by panicking. Last year, the previous government did the same thing. Was it panicking? It is not panicking. Once we license you, there are sanctions for non-compliance of the issues so I don’t subscribe to the panic issue,” Dr. Richmond Atuahene said in an interview with Citi Business News.

    The Central Bank has meanwhile cautioned all players in the foreign exchange and remittance markets to strictly adhere to existing regulations and guidelines.

     

  • Gold reserves increased by 4.7% to 36.02 tonnes in August 2025 – BoG

    Gold reserves increased by 4.7% to 36.02 tonnes in August 2025 – BoG

    The Bank of Ghana’s gold reserves increased by 4.70% in July 2025 to 36.02 tonnes in August 2025.

    According to data from the Central Bank, the gold reserves have risen by 17.6% since the beginning of 2025.

    The gold reserves stood at 30.53 tonnes at the beginning of January 2025 and increased to 30.62 tonnes on January 31, 2025. It has since been rising month-on-month.

    From a little 8.78 tonnes in May 2023, the Central Bank reserves have been rising, contributing significantly to the stability of the cedi in 2025. So far this year, the cedi has appreciated by 20.35% to the US dollar despite the recent weakness of the local currency.

    The accumulation of the gold reserves has been mainly driven by the Domestic Gold Purchase Programme, a policy initiative designed to strengthen foreign exchange reserves, boost investor confidence, enhance currency stability, and create a more conducive environment for foreign direct investment and economic growth.

    The Central Bank said in an earlier communique that “The gold accumulation programme is an essential tool in our efforts to diversify reserve assets, reduce exposure to global financial volatility, and provide the economy with more robust buffers against external shocks”.

    The programme aims to leverage these assets to secure more affordable financing options, thus improving short-term foreign exchange liquidity without heavily-dependent on external debt markets.

     

  • Ghana to refine gold locally by next month

    Ghana to refine gold locally by next month

    All things being equal, under the authority of Ghana Gold Board, Ghana’s gold output will be refined locally before export starting October 2025.

    This will be done through a new partnership arrangement between the Goldbod, Bank of Ghana and local refineries.

    The decision is part of a broader effort to boost value addition in the gold sector and improve Ghana’s economic resilience under the new Gold Board mandate and objectives.

    “It is a national shame that, as a long-standing continental leader in production, Ghana continues to export doré, that is, raw gold instead of bullion. The Ghana Gold Board, which I lead, is determined to change this narrative as a matter of urgency”, the Chief Executive Officer of the Gold Board, Sammy Gyamfi, made this announcement during the first Mining and Minerals Convention held in Accra yesterday.

    “As part of the reset agenda of President Mahama, the GoldBod, in conjunction with the BoG, is partnering with local refineries such as the Gold Coast Refinery to begin the local refining of gold purchased and exported by the GoldBod and this will begin next month, October 2025.”

    Goldbod’s data indicates that small-scale gold exports between January and August 2025 amounted to 66.7 tonnes with an estimated value of $6.3 billion.

    “Since January up to the end of August 2025, small-scale gold exports undertaken by or through the GoldBod, working closely with the BoG, have hit a record high of 66.7 tonnes with an export value of approximately $6.3 billion”, Mr Gyamfi noted.

    “What this means is that the volume and value of small-scale gold exports from January to August 2025 alone have exceeded the total small-scale exports outturn for the whole of the year 2024. That is from January to December, which stood at 63 tonnes with a value of about $4.6 billion.”

     

  • Governor Asiama optimistic of private sector credit rise

    Governor Asiama optimistic of private sector credit rise

    Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has said that the central bank is optimistic that private sector credit will begin to rise.

    He has pointed out that although a decline in private sector credit is not new, the BoG has taken measures to address the situation.

    He said this at the 125th Monetary Policy Committee (MPC) press conference, when his attention was drawn to the fact that there has been a consistent decline in real private sector credit since the beginning of the year.

    Asked what accounted for this trend, Governor Asiama said that “Indeed, this trend is not entirely new. In fact, when you examine private sector credit as a percentage of GDP and compare Ghana to its peers within the sub-region, we appear to be lagging.

    “This reality is behind the initiatives we have undertaken since I assumed office. Our objective is to transition into a regime where credit becomes a central focus for banks. As financial intermediaries, their core function is to mobilise funds from savers and channel them to productive users. Based on the data available to me, we are making steady progress toward that goal.

    “We are optimistic that private sector credit will begin to rise. As that happens, we expect further declines in inflation. Treasury bill rates have already started to fall, and as inflation continues a downward trajectory, the Monetary Policy Committee has indicated its readiness to adjust the policy rate accordingly.”

    In the area of non-performing loan (NPL) ratios, Dr Asiama stated that as part of efforts to address the rising trend, commercial banks have been directed to strengthen their credit administration systems.

    Dr. Asiama noted that soon, banks will need to rely more on the performance of their loan portfolios to sustain returns.

    He disclosed that the NPL ratio currently stands at 23.1 percent, a level that requires continuous supervisory attention.

    When asked what accounted for the figure and what measures were being taken to address it, Dr. Asiama said:

    “We have been actively working to address the issue of high non-performing loans. As I mentioned in my opening remarks, the current level of NPLs remains a concern. In response, we have recently issued new regulatory notices to banks aimed at tackling this challenge.“

    He explained that the Bank of Ghana’s goal is not only to reduce NPLs but also to strengthen credit administration frameworks within banks. This, he stressed, is crucial as the economy transitions away from persistently high interest rates.

    Currently, he observed, Bank of Ghana bills provide attractive returns, enabling banks to invest and report strong bottom lines. However, this phase, he cautioned, is nearing its end.

    “Soon, banks will need to rely more heavily on the performance of their loan portfolios to generate returns. This makes it imperative for them to enhance credit administration and reduce NPLs in order to sustain profitability in the evolving financial landscape,” Dr. Asiama added.

  • Remittance Regulatory Breach: BoG cracks the whip against UBA and partner PSPs and MTOs

    Remittance Regulatory Breach: BoG cracks the whip against UBA and partner PSPs and MTOs

    In its efforts to maintain regulatory grips on the foreign exchange market, the Bank of Ghana has suspended the trading license of United Bank for Africa (UBA) Ghana and its partnering Payment Service Providers (PSPs) and Money Transfer Operators (MTOs).

    The one-month suspension, effective September 18, 2025, was imposed under Section 11(2) of the Foreign Exchange Act, 2006 (Act 723).

    The decision follows multiple breaches of foreign exchange market regulations, including the Updated Guidelines for Inward Remittance Services by Payment Service Providers, 2023, as amended by Notice No. BG/GOV/SEC/2025/25.

    UBA Ghana is charged with unauthorised remittance transactions with Payment Service Providers Halges Financial Technologies Limited, Cellulant Limited, and Flutterwave Inc. on behalf of Money Transfer Operators (MTOs) including Top Connect, Send App, Taptap Send, Remit Choice, and Afriex.

    As part of the sanctions, all remittance partnerships between UBA Ghana and DEMIs, PSPs, and MTOs have been suspended. The central bank stated that any such entities seeking future partnerships with UBA Ghana must reapply for approval after the suspension period ends.

    Meanwhile, the central bank noted that, the suspended operators will only be allowed to resume activities after their partner payment service providers (PSPs) or banks re-apply for approval and the applications are duly considered by the BoG, following the expiration of the suspension.

    The Bank further cautioned players in the foreign exchange market to comply strictly with existing forex market regulations and guidelines to avoid similar sanctions.

     

  • BoG Governor Asiama optimistic of private sector credit rise

    BoG Governor Asiama optimistic of private sector credit rise

    Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has said that the central bank is optimistic that private sector credit will begin to rise.

    He makes the point that although a decline in private sector credit is not new, the BoG has taken measures to address the situation.

    He said this at the 125th Monetary Policy Committee (MPC) press conference, when his attention was drawn to the fact that there has been a consistent decline in real private sector credit since the beginning of the year.

    Asked what accounted for this trend, Governor Asiama said that “Indeed, this trend is not entirely new. In fact, when you examine private sector credit as a percentage of GDP and compare Ghana to its peers within the subregion, we appear to be lagging.

    This reality is behind the initiatives we have undertaken since I assumed office. Our objective is to transition into a regime where credit becomes a central focus for banks. As financial intermediaries, their core function is to mobilise funds from savers and channel them to productive users. Based on the data available to me, we are making steady progress toward that goal.

    “We are optimistic that private sector credit will begin to rise. As that happens, we expect further declines in inflation. Treasury bill rates have already started to fall, and as inflation continues a downward trajectory, the Monetary Policy Committee has indicated its readiness to adjust the policy rate accordingly.”

    In the area of non-performing loan (NPL) ratios, Dr Asiama stated that as part of efforts to address the rising trend, commercial banks have been directed to strengthen their credit administration systems.

    Dr. Asiama noted that soon, banks will need to rely more on the performance of their loan portfolios to sustain returns.

    He disclosed that the NPL ratio currently stands at 23.1 percent, a level that requires continuous supervisory attention.

    When asked what accounted for the figure and what measures were being taken to address it, Dr. Asiama said:

    “We have been actively working to address the issue of high non-performing loans. As I mentioned in my opening remarks, the current level of NPLs remains a concern. In response, we have recently issued new regulatory notices to banks aimed at tackling this challenge.“

    He explained that the Bank of Ghana’s goal is not only to reduce NPLs but also to strengthen credit administration frameworks within banks. This, he stressed, is crucial as the economy transitions away from persistently high interest rates.
    Currently, he observed, Bank of Ghana bills provide attractive returns, enabling banks to invest and report strong bottom lines. However, this phase, he cautioned, is nearing its end.

    “Soon, banks will need to rely more heavily on the performance of their loan portfolios to generate returns. This makes it imperative for them to enhance credit administration and reduce NPLs in order to sustain profitability in the evolving financial landscape,” Dr. Asiama added.