The Bank of Ghana (BoG) has refuted claims of a dollar shortage, assuring the public and businesses that there’s ample foreign exchange to meet demand. The central bank’s statement comes amidst growing concerns from traders and businesses experiencing delays in accessing dollars, particularly from Foreign Currency Accounts (FCAs).
Sources close to the BoG indicate that the perceived shortage isn’t due to a lack of foreign exchange but rather a strict enforcement of existing foreign exchange regulations. These regulations mandate proper documentation for all dollar transactions.
A senior BoG official clarified the situation, explaining, “Last week, someone complained about delays in a forex transfer. Upon investigation, we found that the documentation was incomplete. The Bank of Ghana has a duty to manage the country’s forex reserves prudently, and that means ensuring all withdrawals and transfers are fully supported by the required documentation.” The official emphasized that commercial banks are unable to process dollar transactions without the necessary paperwork, in line with regulatory standards.
Background of the Concerns
The issue was initially brought to light by Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), during the Graphic Business/Stanbic Bank Breakfast Meeting. He highlighted the difficulties traders faced in obtaining foreign exchange from banks. Since then, the problem has gained wider attention, with some individuals also reporting challenges in withdrawing dollars from their personal accounts.
Following discussions with the Bank of Ghana, GUTA issued a statement confirming the central bank’s assurance of adequate forex availability. The BoG has also pledged to engage with commercial banks to address the reported issues. GUTA has urged its members and the broader business community to remain calm as these discussions continue.
Banks Advise Against Large Over-the-Counter Dollar Withdrawals
In a related development, John Awuah, Chief Executive of the Ghana Association of Banks, stated that the association is investigating the matter and will release its findings soon. Speaking on PM Express Business Edition, Mr. Awuah cautioned against large over-the-counter dollar withdrawals, noting that such practices are uncommon internationally.
“We should understand that the dollar is not our currency. Any withdrawal request must be justified,” he explained, citing Ivory Coast as an example where withdrawing a significant amount like US$2,000 over the counter is not typically permitted. He encouraged businesses and individuals to rely on the formal banking system for foreign exchange transactions, emphasizing its safety and efficiency.
Source: Myjoyonline.com