News Guide Africa

Tag: Bank of Ghana (BoG)

  • Digital asset firms given August 15 deadline to register with BoG

    Digital asset firms given August 15 deadline to register with BoG

    All Virtual or Digital Asset Service Providers (VASPs) operating within the country have been given up to August 15, 2025, to register with the Bank of Ghana.

    The directive by the central bank is aimed to bolster financial stability and develop a comprehensive regulatory framework for the growing digital asset ecosystem.

    The mandatory registration applies to both local and foreign VASPs offering services to Ghanaian residents, whether through a physical presence or digital platforms.

    In a statement issued on July 10, the central bank noted that affected services include virtual asset exchanges, digital wallets, custody and settlement services, and the issuance or sale of crypto assets such as stable coins and initial coin offerings (ICOs).

    “This exercise is aimed at ensuring that the forthcoming legal and regulatory frameworks for VASPs are informed by market developments and aligned with international best practices,” the central bank said.

    The BoG clarified that registration does not amount to a license to operate or imply legal recognition or approval. However, failure to comply may result in sanctions or disqualification from future licensing opportunities.

    The central bank’s move comes amid increasing global efforts to bring virtual asset activities under regulatory oversight, particularly to prevent financial crimes, protect consumers, and ensure the integrity of financial markets.

    Ghana, like many emerging economies, is experiencing rapid growth in digital financial services, including crypto-related activities. However, the absence of clear regulatory guidelines has left a vacuum that the BoG now aims to fill.

    VASPs and other stakeholders in the digital finance space are encouraged to take immediate steps to comply. Technical assistance is available through the email address: vasp@bog.gov.gh.

    Also, the registration process can be completed online via a dedicated portal at https://forms.office.com/r/XqthpEkhkQ.

    This development is seen as a precursor to broader reforms in Ghana’s digital finance sector as the central bank seeks to strike a balance between innovation and regulation.

  • BoG moves to improve security measures …as cybercrime cost Africa excess of US$4bn annually

    Adnan Adams Mohammed

    The International Police (Interpol) has estimated that, the cost of cybercrime across Africa is in excess of US$4.0 billion annually.

    This is evident locally as the Bank of Ghana reports indicates that, in 2022, Ghana recorded over 21,000 cyber fraud attempts in the financial sector, most targeting digital platforms.

    First Deputy Governor of the Bank of Ghana, Dr. Zakari Mumuni has posited that, cybercrime is not a distant risk; it is a present danger, recalling that, in 2018, the bank issued one of the continent’s earliest Cyber and Information Security Directives for financial institutions, mandating risk-based frameworks, incident response protocols, and regulatory reporting.

    “This reality underscores a simple truth: financial inclusion without system integrity is unsustainable. Cybersecurity is no longer an IT issue, it is a strategic imperative at the core of financial governance”, Dr Mumuni, said.

    “Public trust, institutional confidence, and systemic stability now hinge on our ability to anticipate, withstand, and respond to cyber risks,” he said at the 14th AFI leaders’ roundtable discussion on the theme “Strengthening cyber resilience in digital financial services in Africa.”

    Dr. Zakari noted that the Central Bank has long recognised this imperative.

    “Today, over 40 financial institutions are integrated into our Financial Industry Security Operations Centre (FINSOC), enabling real-time threat detection and response,” he said.

    The BoG conducts annual cybersecurity maturity assessments, using international frameworks like NIST and COBIT-5, to inform supervisory action and identify systemic gaps. In 2024, over 40% of assessed entities showed critical vulnerabilities particularly in access control and incident response.

    “We are addressing these gaps with targeted interventions. Critically, we are not acting alone. We continue to work closely with Ghana’s Cyber Security Authority, the World Bank, INTERPOL, and the Africa Cybersecurity Resource Centre to bolster expertise and coordinate responses at scale,” he said.

    To demonstrate this commitment, he recalled that in 2023, Ghana joined the African Development Bank’s AFAWA initiative, supporting financial institutions to unlock credit for women entrepreneurs through risk-sharing instruments and technical assistance.

    Even more significantly, he said, under the leadership of President John Dramani Mahama, Ghana is establishing a Women’s Development Bank, with seed capital of GHc 51.3 million allocated in the 2025 budget.

    “This institution will directly address the persistent credit gap faced by women-led businesses particularly in agriculture, trade, and tech,” Dr Mumuni said.

    He added that these initiatives reflect our belief that women’s financial inclusion is not a social obligation, but a smart economic strategy.

    “The digital financial future we envision is rich with promise, but that promise will only be realized if it is anchored in systems that are trusted, inclusive, and secure.

    “The work we’ve done this week, the insights shared, the tools exchanged, the partnerships renewed, are powerful signals of what is possible when we lead together. I am confident that we have the will and the wisdom to build a resilient financial future for all Africans,” he said.

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

     

  • Cybercrime cost Africa excess of US$4bn annually

    Cybercrime cost Africa excess of US$4bn annually

    The International Police (Interpol) has estimated that, the cost of cybercrime across Africa is in excess of US$4.0 billion annually.

    This is evident locally as the Bank of Ghana reports indicates that, in 2022, Ghana recorded over 21,000 cyber fraud attempts in the financial sector, most targeting digital platforms.

    First Deputy Governor of the Bank of Ghana, Dr Zakari Mumuni has posited that, cybercrime is not a distant risk; it is a present danger, recalling that, in 2018, the bank issued one of the continent’s earliest Cyber and Information Security Directives for financial institutions, mandating risk-based frameworks, incident response protocols, and regulatory reporting.

    “This reality underscores a simple truth: financial inclusion without system integrity is unsustainable. Cybersecurity is no longer an IT issue, it is a strategic imperative at the core of financial governance”, Dr Mumuni, said.

    “Public trust, institutional confidence, and systemic stability now hinge on our ability to anticipate, withstand, and respond to cyber risks,” he said at the 14th AFI leaders’ roundtable discussion on the theme “Strengthening cyber resilience in digital financial services in Africa.”

    Dr Zkarai noted that the Central Bank has long recognized this imperative.

    “Today, over 40 financial institutions are integrated into our Financial Industry Security Operations Centre (FINSOC), enabling real-time threat detection and response,” he said.

    The BoG conducts annual cybersecurity maturity assessments, using international frameworks like NIST and COBIT-5, to inform supervisory action and identify systemic gaps. In 2024, over 40% of assessed entities showed critical vulnerabilities particularly in access control and incident response.

    “We are addressing these gaps with targeted interventions. Critically, we are not acting alone. We continue to work closely with Ghana’s Cyber Security Authority, the World Bank, INTERPOL, and the Africa Cybersecurity Resource Centre to bolster expertise and coordinate responses at scale,” he said.

    To demonstrate this commitment, he recalled that in 2023, Ghana joined the African Development Bank’s AFAWA initiative, supporting financial institutions to unlock credit for women entrepreneurs through risk-sharing instruments and technical assistance.

    Even more significantly, he said, under the leadership of President John Dramani Mahama, Ghana is establishing a Women’s Development Bank, with seed capital of GHc 51.3 million allocated in the 2025 budget.

    “This institution will directly address the persistent credit gap faced by women-led businesses particularly in agriculture, trade, and tech,” Dr Mumuni said.

    He added that these initiatives reflect our belief that women’s financial inclusion is not a social obligation, but a smart economic strategy.

    “The digital financial future we envision is rich with promise, but that promise will only be realized if it is anchored in systems that are trusted, inclusive, and secure.

    “The work we’ve done this week, the insights shared, the tools exchanged, the partnerships renewed, are powerful signals of what is possible when we lead together. I am confident that we have the will and the wisdom to build a resilient financial future for all Africans,” he said.

     

     

     

     

     

  • Bank of Ghana

    By Elorm Desewu
    The Bank of Ghana, (BoG) plans to auction US$120 million to the Bulk Oil Distribution Companies (BDCs) in the first quarter of 2025.
    This is to enable them get enough forex for importation of crude oil into the country as the government has temporally suspended the Gold for Oil Program.
    According to BoG’s Forex Forward Auction Calendar, the central bank will auction US$40 million to the BDCs in each month of the first quarter of 2025.
    In each of the months in the first quarter, the BoG will auction US$20 million every fortnight to meet the dollar demands of the BDCs
    According to the Bank of Ghana, the said amount is going to be sold at the Foreign Exchange Forward Auction in accordance to its auction guidelines.
    Last year, the central bank gave authorisation to nine forex brokers in the country to operate on the Ghana Interbank forex market effective January 01, 2024 to December 31, 2024.
    They are Black Star Brokerage, CSL Capital, Fenics MD,  ICAP African Brokers Ltd, Obsidian Acherner, Regulus,  Sarpong Capital, Savvy Securities and Terika Financial Services Ltd.
    This is in line with Section 3.13.1 of the Ghana Interbank Forex Market Conduct rules which stipulates; “local and International Foreign Exchange (FX) Brokers who want to operate in Ghana’s forex market are required to obtain prior approval from the Bank of Ghana at the beginning of every calendar year” it said in a statement issued  and signed by the Secretary of the BoG, Ms. Sandra Thompson.
    According to Bank of Ghana, it reserves the right to delist any authorised FX broker for nonperformance or non-compliance with the FX Act and the Interbank FX Market Conduct rules. An FX broker is to particularly note that “it shall not deal directly with a corporate entity; it shall not also buy or sell foreign exchange for its own account nor hold, borrow or lend foreign exchange to an authorised market participant”.
    A statement from the Financial Markets Department of BoG said on each trading day, authorised FX brokers shall be required to send to the BoG an interim report mid-day and end of day report when the market closes and should cover pricing and volumes. This report shall be sent to fxbrokers@bog.gov.gh;  FX brokers shall adhere to all applicable requirements under the Ghana Interbank FX Market Conduct rules.
    The Bank of Ghana (BoG) shall impose penalties and/or revoke authorisation if any FX broker is deemed to have deviated from any of the Ghana Interbank FX Market Conduct rules; an FX broker shall apply for a renewal of authorisation as an FX broker in Ghana by the end of the first working week of December of every calendar year; restructuring of the FX broker, e.g. mergers, takeovers and any other significant changes (e.g. change of company name, etc.); must be reported to the BoG without delay.
    In the event of restructuring and/or changes to the FX brokers’ regulatory status, proof must be provided that the regulatory authority has either approved or has not objected to such changes; An FX broker shall not take the other side of customer trades, nor should the trade be outsourced to any single third party who can skew the price according to their own trading book.
    It said, If the counterparty makes its own price, then the FX broker should seek a best price from a reasonable array of wholesale market makers and an FX broker shall not deal directly with a corporate entity, it shall not also buy or sell foreign exchange for its own account nor hold, borrow or lend foreign exchange to an authorised market participant.
    An FX broker must have a robust system in place with the required safeguards against cybercrime and other forms of internet or other technology threats in line with the Bank of Ghana’s Cyber Security Directives; and also an FX broker shall quote exchange rates that are based on actual transactions within the domestic economy in Ghana and may be required to provide evidence of that as deemed necessary.

  • Increasing cost of doing business, labor agitation leading cause of cedi depreciation 

    Forex trading

     

     

    Adnan Adams Mohammed

     

    A research institute has attributed the hiking foreign exchange rates and persistent inflation to high cost of doing business, increasing labor agitation and corruption.

     

    In its assessment of midyear budget review, the Institute of Statistical, Social and Economic Research (ISSER) at the University of Ghana admitted that, the cedi has experienced significant depreciation against major foreign currencies.

     

    The Institute therefore wants the government through the Bank of Ghana to reinforce monetary policies and control measure to strengthen the local currency, Cedi.

     

    “.. the central bank should increase its presence in the exchange rate market,” ISSER admonished.

     

    Data from BoG indicates that, in the first half of 2024, the cedi depreciated by 18.6 percent against the US Dollar, 17.9 percent against the Pound Sterling, and 16.0 percent against the Euro.

     

    The cedi recorded a depreciation of 27.8% against the U.S Dollar, 31.9 % against the Pound, and 30.3 % against the Euro in 2023. Also, a 30.0 % depreciation against the Dollar, 21.2 % against the Pound, and 25.3 % against the Euro in 2022.

     

    “This suggests some stabilization of the exchange rate over the past three years,” the report stated.

     

    However, the cedi was generally more volatile against major foreign currencies in the first half of 2024 compared to the same period last year.

     

    Despite this volatility, the cumulative depreciation rates were relatively lower, but ISSER urged the government to take additional measures to curb the cedi’s depreciation.

     

    The report recommended that the government reduce the rate of cedi depreciation, boost exports to lessen foreign exchange demand, and enforce stricter forex regulations.

     

    On inflation, the Institute noted that June 2024 inflation had decreased to 22.8 %, a significant drop from the peak of 54.6 % in December 2022.

     

    Despite this reduction, the figure remains high compared to the 12.6 % inflation rate in December 2021.

     

    ISSER urged the government to address the commodities driving inflation and consider improving infrastructure in key food-producing areas to reduce transportation and fuel costs.

     

    “For instance, enhancing the road network in areas designated as the food basket of Ghana and reducing foreign exchange rates can help lower transportation and fuel costs, subsequently reducing both food and non-food inflation to single digits,” the report concluded.

     

     

  • ‘Gold4Oil’ policy may be reintroduced as cedi weakens – BoG

    Gold bar and oil in a drum

    Adnan Adams Mohammed

    The Bank of Ghana has indicated that, the Gold for Oil (Gold4Oil) programme may be reintroduced, if the need be, to help strengthen the local currency.

    This comes at a time when the Ghana Cedi is  depreciating sharply against the U.S Dollar, Euro, and Pounds Sterling on the Forex Market. Beginning of January to April, as at last week, the cedi has experienced a continuous blip depreciation, resulting in a year-to-date depreciation of approximately 9.37%.

    Data from the Bank of Ghana indicates a consistent depreciation trend, with rates of 1.69%, 0.98%, and 1.77% for January, February, and March 2024, respectively, despite efforts such as fresh dollar inflows and forex auctions to Bulk Oil Distribution Companies (BDCs). Although, there is huge improvement in the depreciation trend on year-on-year basis compared to the 22.73% depreciation recorded as of April 2023. 

    However, the Central bank Governor, Dr Ernest Addison appearing at the Public Accounts Committee (PAC), last week, reiterated the pivotal role the Gold4OIL policy played amid the economic turmoil in 2022 and 2023 in managing the exchange rate and pump prices of fuel. Thereby, proposing that, the government could continue relying on the policy if oil prices surge at the pumps, opposing any potential discontinuation.

    “This is an intervention which was very critical in the heat of the crisis. Yes, the foreign exchange market is functioning better than it was in 2022. Oil prices have come down much better than they were in 2022″.

    “The situation is much better now than it was in 2022 when the Gold4Oil policy was introduced,” he acknowledged.

    “However, we think that it’s still an important programme for the government to have that option and to be able to empower commercial banks to undertake their activities”. 

    “Should market sentiments change, which do every day; we don’t know what will happen tomorrow, and we will wake up and if we find ourselves in a situation where the prices are driving the pumps to where they were again, the government has the option to fall on. It’s a very innovative instrument”.

    He also projected “a big jump in gold holdings for Ghana”.

    Meanwhile, in real terms, commercial banks are reporting an all-time high exchange rate of GHS 13.455 to a dollar, compared to GHS 11.55 during the same period last year. 

    While some analysts project a potential reversal of the cedi’s fall in the first half of the year, others fear its impact on inflation. 

    To stabilise the cedi, the Bank of Ghana plans to auction $120 million to BDCs in the second quarter of 2024, although persistent demand for dollars by businesses may pose challenges. 

    Concerns persist regarding currency volatility, despite maintaining the policy rate at 29% and lending rates averaging over 32%. However, Governor of the Bank of Ghana, Dr. Ernest Addison, expressed optimism at the last Monetary Policy Committee meeting, citing strong reserves from improved remittance inflows as a buffer for the local currency in the upcoming months.