BoG’s New FX Directive Risks Fuel Shortages, Black Market Surge – IERPP Warns

On August 20, 2025, the central bank announced that commercial banks may no longer allow corporates to withdraw foreign currency in cash unless those firms had already lodged equivalent foreign exchange deposits.

The move, which BoG says is aimed at enforcing discipline in the FX market, has been described by critics as “economic self-sabotage.”

The directive comes despite recent warnings from Ghana’s key development partners. On July 7, the International Monetary Fund (IMF) urged Ghana to reduce central bank intervention in the FX market and allow the cedi’s value to be shaped more by supply and demand.

A follow-up caution from the World Bank on August 14 stressed the need to protect FX liquidity to ensure vital imports such as fuel, medicines, and raw materials remain uninterrupted.

Analysts argue that BoG has ignored both calls. Instead of loosening controls to deepen liquidity, it has tightened them, cutting corporates off from the FX lifelines they rely on.

Critics point to oil and fuel importers as the first likely casualties of the policy.“Consider an oil importer needing $100 million,” one analyst explained. “In a healthy market, Bank A could source dollars from Bank B or through an FX auction. Under the new rule, that importer is shut out unless they had pre-lodged the same dollars in advance — an impossible requirement.”

Bulk Oil Distribution Companies (BDCs), which keep Ghana’s petroleum supply chain running, could also face paralysis. Without prior FX deposits, banks cannot release dollars for fuel imports, raising the risk of fuel shortages and higher pump prices.

Analysts warn that restricting FX access in this way may force companies into the parallel market, eroding confidence in the banking system.“The IMF asked for less intervention and more flexibility. BoG has instead tightened controls. The result will not be stability but shortages, black markets, and another blow to confidence in Ghana’s economy,” one economic observer noted.

While BoG insists the measure is meant to instill discipline in the use of FX, industry experts argue that stability can only be achieved through transparency, predictability, and market-driven rules — not by shutting the door to critical industries.