Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has cautioned that the central bank will no longer permit corporations to withdraw large sums of dollars in cash from the system.
He stressed that the era when businesses could demand to walk away with as much as $10 million over the counter has ended.
“Imagine a corporation wanting to withdraw $10 million over the counter. What do they use that for? Their payments are abroad, and they don’t carry physical cash to settle anything,” Dr. Asiama explained.
According to him, companies earning money through export rights into their foreign currency accounts must channel payments abroad electronically, rather than cashing out locally.
The Governor clarified that the directive is not aimed at individuals who may need smaller amounts of foreign currency for personal use.
“For individuals like you and me, probably you need a few $100 or $200 to do something, that’s understandable. You can negotiate with your bank,” he said.
Responding to claims that the central bank was being too rigid, Dr. Asiama dismissed the criticism, noting that the measures are meant to protect the market and curb illegal cash movements.
He revealed that intelligence reports showed some people had been carrying huge sums of dollars out of the country without declaring them.
“Some people are carrying over a million dollars just out of Ghana, without declaring them. Those are leakages, and as a regulator, we must work with other agencies to ensure such sums are accounted for. That also supports the fight against money laundering,” he said.
Dr. Asiama emphasised that the directives were the result of consultations with banks, adding that financial institutions had been engaged extensively before the notices were issued.
“We are just redefining the framework within which the market has to work efficiently. These are things we should have been enforcing earlier, but now we are making the rules clearer,” he added.
Source: MyJoyOnline
