Economists Call for Withdrawal of “Draconian” Bank of Ghana Forex Directive

A leading economic think tank has launched a scathing attack on the Bank of Ghana’s recent directive restricting foreign currency cash payments to large corporations, describing the measure as “regressive” and warning it could inflict “serious harm on the Ghanaian economy.”

The African Policy Lens (APL), in a statement released Thursday, called for the immediate withdrawal of what it termed the “draconian directive” that requires banks to discontinue foreign currency disbursements to critical entities unless they first lodge equivalent foreign cash deposits.

“The directive suggests that the BoG is more concerned with temporarily propping up the exchange rate rather than pursuing prudent and sustainable economic measures,” said Dr. George Domfe, Development Economist, University of Ghana & President of APL.

The policy particularly affects Bulk Oil Distribution Companies (BDCs) and mining firms, which APL argues face an impossible operational challenge under the new rules.

“A critical question arises: do all these firms sell their products and services in foreign currency?” Dr. Domfeh questioned. “If not, how does the BoG expect companies like the BDCs to make foreign deposits before requesting forex to import petroleum products from the international markets?”

*Concerns Over Black Market Activity*

The economist raised alarm about potential unintended consequences, suggesting the directive could push legitimate businesses toward illegal forex transactions.

“This directive clearly demonstrates that the BoG has lost touch with its mandate,” Dr. Domfeh stated. “Is the central bank, by implication, pushing BDCs and mining companies toward transacting in the black market? If so, what becomes of the sustainability of the local currency, which this very directive claims to protect?”

The APL statement highlighted what it sees as a fundamental contradiction in the Bank of Ghana’s approach to currency management.

“If—as the Governor insists—the exchange rate is determined solely by market forces and not excessive intervention by the BoG, then the central bank has no legitimate reason to be anxious,” Dr. Domfeh argued.

*Call for Policy Reversal*

The think tank’s intervention reflects growing concerns among economists and business leaders about the practical implications of the central bank’s forex restrictions on critical sectors of the economy.

APL described the directive as showing “a lack of foresight and disregard for the operational realities of businesses and the welfare of the Ghanaian people.”

The organization is calling on the Bank of Ghana to reconsider the policy and pursue what it terms “prudent and sustainable economic measures” rather than short-term interventions that could harm business operations.

As of press time, the Bank of Ghana had not responded to requests for comment on APL’s criticisms of the foreign currency directive.

For more information, contact Dr. George Domfe, Development Economist, University of Ghana & President of APL

+233 24 092 0170