Bank of Ghana's Strategic Forex Controls Strengthen Economic Stability
Banking expert Dr Richmond Atuahene defends Bank of Ghana's forex market interventions as strategic measures to protect economic stability, citing improved cedi performance and market discipline.
Bank of Ghana headquarters building in Accra, showcasing the central bank's role in economic stability
The Bank of Ghana's (BoG) recent regulatory actions in the foreign exchange and remittance markets represent a strategic approach to maintaining economic stability, according to respected banking sector expert Dr Richmond Atuahene.
Strategic Economic Protection Measures
As Ghana's cedi faces renewed market pressures, Dr Atuahene emphasizes that the Central Bank's interventions are calculated measures rather than panic responses. The sanctions against non-compliant operators demonstrate Ghana's commitment to maintaining financial market integrity and protecting vital remittance channels.
"It is not a panic reaction... Every country, especially in developing world or emerging economies where remittances play a key part of their balance of payment, needs such strategic controls," stated Dr Atuahene in an interview with Citi News.
UBA Ghana's License Suspension
In a significant enforcement action, the BoG suspended United Bank for Africa (UBA Ghana)'s Foreign Exchange Trading License for one month, effective September 18, 2025. This decision follows multiple violations involving unauthorized remittance activities with various Payment Service Providers, highlighting the growing emphasis on financial sector compliance.
Key Violations Include:
- Unauthorized partnerships with Halges Financial Technologies Limited
- Irregular transactions with Cellulant Limited and Flutterwave Inc.
- Unauthorized activities with various Money Transfer Operators
Market Impact and Future Outlook
The regulatory measures have shown positive results, with the cedi's exchange rate improving from GH₵17 to GH₵12 against the dollar. This success demonstrates the effectiveness of Ghana's innovative approach to economic management.
The BoG has issued stern warnings to all forex market participants, emphasizing the need for strict compliance with established regulations to avoid similar sanctions.
Edwin Gyimah
Ghanaian journalist, covering African affairs for the past 10 years.