The Bank of Ghana (BoG) and the Securities and Exchange Commission (SEC), in a joint directive issued on 20th February 2026, have given Virtual Asset Service Providers (VASPs) 48 hours to remove their branding from public spaces or face “severe sanctions.”

The move signals a hardening of the state’s stance against unregulated mass marketing in the fintech space, targeting the increasing advertisement of digital products that have recently dominated the skylines of Accra and other major cities.

The regulators clarified that no firm — regardless of its operational status — is permitted to undertake mass promotional campaigns without explicit authorisation. This includes companies operating within the regulatory sandbox, a framework designed to test innovations under supervisory oversight, which may have assumed broader flexibility.

“All VASPs, including those operating within the BoG and SEC sandbox, are hereby directed to refrain from mass marketing or public promotional campaigns on virtual assets, unless expressly authorised by the BoG and SEC,” the statement read.

The BoG and SEC expressed concern over the “increasing advertisement of virtual asset and stablecoin products, including the use of large billboards in Accra and other parts of the country by certain Virtual Asset Service Providers (VASPs).”

Central to the enforcement action is the Virtual Asset Service Providers Act, 2025 (Act 1154). Under the new law, virtual asset advocacy is classified as a regulated activity that requires formal registration with both the BoG and the SEC.

Although the Act provides a transition period for existing operators to seek licensing, the regulators stressed that the grace period does not extend to promotional activities. In effect, all public-facing marketing campaigns are suspended until the regulatory framework is fully operational.

“Furthermore, virtual asset advocacy is a regulated activity under the Virtual Asset Service Providers Act, 2025 (Act 1154), and requires registration with the BoG and SEC. Detailed rules on advocacy and advertisements will be issued in due course,” the regulators added.

The ultimatum leaves little room for negotiation. Operators who have invested heavily in outdoor and digital advertising are now required to dismantle their campaigns within 48 hours of the notice.

“This notice is to caution VASPs who have mounted billboards and other forms of public advertisement to take them down within 48 hours of the date of this notice. Failure to comply will result in severe sanctions against the offending service providers,” the regulators warned.

The crackdown is widely viewed as a precautionary step to shield consumers from exposure to high-risk or unauthorised products while the BoG and SEC finalise detailed rules to govern digital asset operations in Ghana.

The joint directive marks the latest phase in Ghana’s effort to regulate a rapidly evolving digital financial ecosystem, where stablecoins and cryptocurrencies have seen growing adoption. By curbing mass marketing, authorities aim to temper speculation and strengthen oversight as the regulatory regime takes shape.

According to the directive, the Single Currency Position limit for each currency shall range from 0% to -10% of Net Own Funds (NOF).

Daily changes in NOP, excluding contingent liabilities, shall be fully reconciled with the net foreign exchange trade for the reporting day, calculated as total FX purchases less total FX sales.

Again, all banks shall continue to submit the Daily Bank Returns (DBK). Similarly, reports for each working day shall be submitted no later than 10:00 a.m. on the following business day.

Authorised Dealer Banks shall restrict their Net Open Position (NOP) to the limits and conditions set out including the single currency position at the close of business on any day shall be either a squared (0%) or a short position not exceeding 10% of NOF for each currency.

Where a bank enters into transactions involving partial margins denominated in foreign currency, and such margins are in the same currency as the underlying Letter of Credit or contingent exposure, only the net exposure, being the difference between the face value of the Letter of Credit and the foreign currency margin, shall be included in the computation of the Net Open Position.

The Bank of Ghana concluded advising banks to ensure that reports are complete, accurate and submitted within the prescribed timelines.

“Any inaccurate, incomplete, delayed submissions and/or non-submission of reports shall attract sanctions as provided in Section 93 (3) and Section 41 (4) of Act 930 as well as any other applicable laws and regulations”.

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Speaking at the Africa Prosperity Dialogues 2026, she stressed that without secure, affordable, and reliable payment systems, efforts to deepen intra-African trade would fall short.

“Payments make trade possible. Without secure, affordable, and reliable means of transferring value, the promise of a truly integrated African market cannot be achieved,” she said.

According to Madam Asiedu, payment systems should be seen as strategic trade infrastructure, critical for monetary stability, financial integration, and long-term economic transformation across the continent.

Despite Africa’s enormous economic potential, she noted that cross-border payments within the continent remain expensive, slow, and fragmented.

“Transaction costs for intra-Africa payments exceed between 7 and 10 per cent, compared to about 3 per cent globally. Settlement times can also take days or even weeks,” she explained.

She said these challenges, while significant, also present major opportunities for innovation and reform.

The deputy governor highlighted that AfCFTA brings together a market of more than 1.5 billion people with a combined gross domestic product (GDP) of about $2.8 trillion. If fully implemented, she said, trade within Africa could double in the medium term.

However, she cautioned that such growth would only materialise if the continent’s payment systems are upgraded to match its trade ambitions.

Madam Asiedu also pointed to Africa’s leadership in digital finance, particularly in mobile money and financial inclusion.

“With more than half of the world’s mobile wallets on the continent, Africa has shown that technology can expand financial inclusion and transform livelihoods,” she said, citing Ghana as a leading example.

She added that while digital finance has made it easier for people to transact within their countries, more must be done to enable seamless payments across borders.

“Inclusion must not stop at national boundaries. It must extend beyond individual countries if Africa’s single market is to truly work,” she noted.

The Africa Prosperity Dialogues 2026, held in Accra, brought together policymakers, business leaders, financial institutions, and development partners to discuss practical ways of accelerating economic integration and trade under AfCFTA.

Ghana, which hosts the AfCFTA Secretariat, continues to play a central role in driving conversations around trade facilitation, digital payments, and regional integration.

Industry players at the forum agreed that improving payment infrastructure, harmonising regulations, and promoting interoperable digital platforms will be critical to unlocking the full benefits of intra-African trade.

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These are UMB and Prudential Bank Ghana.

According to the Governor of the Bank of Ghana, Dr. Johnson Asiamah, some commitments have been made to ensure that the two banks receive the necessary capital as soon as possible.

For UMB, he disclosed that the recapitalisation plans have been extended to end-March 2026. This is to enable other key shareholders such as SSNIT and SIC to make good the proposed capital injections.

He added that discussions are ongoing between the Bank of Ghana on one hand and SSNIT, SIC and the Ghana Amalgamated Trust on the other hand.

For Prudential Bank Limited, the Governor said the government intends to close the bank’s capital gap.

This is in line with the Overarching Restructuring Strategy and Plan developed by the Government, Bank of Ghana and Prudential Bank Limited.

Meanwhile, Dr. Asiamah says the Government of Ghana remains the majority shareholder of ADB.

It has a shareholding of 88.16% whilst the Bank of Ghana has 9.66% shares.

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Previously, the Minister for Finance, Dr Cassiel Ato Forson, had ruled out the use of taxpayer funds for the recapitalisation of the BoG, referencing a ¢53 billion recapitalisation Memorandum of Understanding signed under the former Ernest Addison-led administration.

He maintained that any capital restoration should be achieved through internal reforms and restructuring rather than direct budgetary injections.

However, speaking at the 128th Monetary Policy Committee (MPC) press briefing on Wednesday, January 28, 2026, Governor of the Bank of Ghana, Dr Johnson Asiama, said discussions with government on restoring the Bank’s financial health have been positive, stressing that recapitalisation remains critical to the Bank’s credibility and independence.

“I believe in the commitment of government to recapitalise the Central Bank following the hit it took to protect the economy amid the domestic debt restructuring programme. So far, discussions with government have been fruitful, and there is support to help repair the Bank’s balance sheet”, Dr Asiama said.

He explained that rebuilding the BoG’s capital base is essential for the effective execution of its core mandate, including price stability, financial sector regulation and overall macroeconomic management.

“It is only fair that the wounds suffered as a result are addressed,” the Governor noted, adding that the recapitalisation effort would protect the Central Bank’s operational independence and reinforce confidence in monetary policy.

Beyond the Central Bank, Dr Asiama also provided an update on the recapitalisation of the commercial banking sector, pointing to notable improvements in resilience across the industry.

He disclosed that as of the end of December 2025, 21 out of the 23 licensed banks had met the required capital adequacy thresholds, with the remaining two institutions granted until the end of March 2026 to comply.

“We have two more banks that are yet to meet the requirement, but they have been given until the end of March 2026,” he said.

“Overall, we have made significant progress on the recapitalisation strategy, and we are monitoring closely to ensure full compliance.”

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It also wants it to be done before appointment of any director or key management personnel.

It disclosed this in questions and answers session on the new guidelines on the Fit and Proper persons for Accountable Institutions.

On what accountable institutions should do during the assessment, the Central Bank called for the conduct of a comprehensive due diligence.

It also advised the verification of all material information through an independent source.

The documents required for assessment are the application letter, updated CV, the personality note form, tax clearance certificate, certified financial statement of affairs, copies of academic and professional certificates, police report, enhanced due diligence questionnaire, regulatory references (minimum six years), bankruptcy or insolvency certificate (if applicable) and beneficial ownership disclosures (for corporate entities

The responsibilities of the Board are to appoint qualified directors and key management staff, conduct due diligence prior to all appointments, establish a robust Fit and Proper Policy, oversee assessments of outsourcing arrangements and ensure ongoing competence of Board members and key personnel.

On the other hand, the responsibilities of key management are to conduct fit and proper assessments for middle and lower management, submit findings to the Board and ensure annual assessments for heads of control functions (Risk, Compliance, AML/CFT, Internal Audit, etc.).

Should the person found not fit and proper, the Bank of Ghana would reject or revoke an appointment or Issue a prohibition order for up to 10 years of prevent the person from holding shares, directorships, or key function.

The group said the development raises serious questions about transparency and accountability in economic governance.

In its January 12 statement, CDM criticised what it described as conflicting narratives from government-aligned institutions, including GoldBod, which had previously insisted that the programme was profitable. Official data, the group said, now contradicts those claims and confirms substantial losses.

“Allegations of losses running into hundreds of millions of dollars remain unreconciled,” CDM noted, stressing that the lack of clarity has fuelled public suspicion and parliamentary concern.

The group argued that the absence of a clearly disclosed legal and operational framework for the programme represents a systemic failure. It also accused authorities of persistently evading parliamentary and public scrutiny despite repeated requests for documentation.

CDM is demanding “an independent, internationally credible forensic audit” covering physical gold volumes, pricing, foreign exchange flows, and net outcomes.

The group further called for the immediate public release of all contracts, memoranda of understanding, and valuation reports linked to the programme.

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The guidelines is issued pursuant to section 101(2)(j) of the Payment Systems and Services Act, 2019 (Act 987) and section 52(5)(e)(i) of the Anti-Money Laundering Act, 2020 (Act 1044).

The guidelines which take immediate effect shall apply to Banks, Specialised Deposit-Taking Institutions, Electronic Money Issuers and Payment Service Providers and any other institution licensed by the Bank of Ghana to undertake agency banking activities.

The objectives of this guideline are to assist principals to develop and implement effective risk-based AML/CFT/CPF compliance programmes; and ensure that the agent(s) understand and comply with AML/CFT/CPF laws and regulatory requirements.

The Guideline is structured under corporate governance, Known Your Customer, among others.

For corporate governance, the Board and Management of a principal shall be responsible for the AML/CFT/CPF enforcement and compliance of its agent(s).

The Board shall also approve the risk assessment of agency banking, as prepared by the Management of a Principal and document same. The assessment shall be updated through a periodic review within a two-year cycle or in the event of a significant occurrence.

For KYC, a principal shall ensure that its agent(s) always complies with KYC/CDD/EDD policies and procedures.

Together with their directors/management and employees, they are prohibited from disclosing that a report has been filed with the FIC.

This was captured in the Anti-Money Laundering and Combating of Terrorism Financing Guidelines for Forex Bureaus 2025.

The guidelines urged all foreign exchange bureaus to screen all customers. They are also not to transact business with sanctioned customers, designated by the United Nations Security Council, OFAC, European Union, His Majesty’s Treasury, Africa Union, ECOWAS or a Competent Authority or a Supervisory Body as well as business with domestically sanctioned customers.

Meanwhile, forex bureaus are required to adopt a risk-based approach in the identification and management of ML/TF/PF risks.

They shall ensure that AML/CFT/CPF policies governing their operations do not only prescribe money laundering and predicate offences but also prescribe sanctions for non-compliance with the relevant AML/CFT/CPF requirements.

The Bank of Ghana added that it is, therefore, in the best interest of the forex bureaus to entrench a culture of compliance that would be facilitated by these guidelines.

During a visit to the central bank’s headquarters in Accra, the Asantehene highlighted the significant impact of monetary policy on everyday life, describing the Bank of Ghana as an institution whose decisions determine “whether we have shelter over our heads, food on the table, and the ability to educate our children and care for our families.”

Addressing Governor Dr. Johnson Asiama, his deputies, and members of the Monetary Policy Committee, Otumfuo Osei Tutu II said, “The challenge I leave with your creative brains is to fashion how you move the economy from the crippling high interest regime to the level where it becomes a stimulant of business and wealth creation.”

While acknowledging recent gains in macroeconomic stability, including signs of currency steadiness, the Asantehene cautioned against complacency. He urged policymakers to focus more deliberately on lowering borrowing costs to stimulate domestic private investment and create jobs.

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The Association credited the central bank’s policies for the strong recovery of the cedi and improved trading conditions in 2025.

Speaking at a media engagement and New Year meeting in Accra on Saturday, January 3, IEAG Executive Secretary Samson Asaki Awingobit said claims about alleged losses by the Bank of Ghana and the Gold Board had overshadowed the central bank’s contribution to stabilising the economy.

He noted that while public debate is essential in a democracy, some negative reportage had failed to appreciate the technical nuances of monetary policy and its impact on economic recovery.

According to Mr. Awingobit, the cedi recorded a significant turnaround in 2025, strengthening by more than 40 per cent against the US dollar by mid-year. He said the appreciation eased import costs and reduced exchange-rate pressures on traders.

He explained that the currency’s performance reflected improved foreign exchange buffers and a rebound in export earnings, with gross international reserves rising to over 11 billion dollars by mid-2025, providing nearly five months of import cover.

From the perspective of importers and exporters, the IEAG stressed that the cedi’s appreciation resulted from disciplined monetary policy, improved market confidence, and increased activity in the foreign exchange market.

Mr. Awingobit also highlighted strong export performance, including trade surpluses and an estimated 60 per cent growth in export earnings in the first half of 2025, as key factors supporting currency stability and reducing the cost of doing business.

The Association commended the Bank of Ghana for its steady leadership during a challenging economic period, noting that observable outcomes reflect purposeful efforts to strengthen macroeconomic resilience and ensure trade continuity.

Looking ahead to 2026, the IEAG expressed optimism about Ghana’s economic outlook and called for continued prudent monetary policy, stronger collaboration between policymakers and the private sector, and balanced, informed media reporting on economic issues affecting currency stability and key state institutions.

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Ghana’s Gold-for-Reserves (G4R) and Domestic Gold Purchase Programme (DGPP) have been celebrated as innovative strategies to strengthen Ghana’s reserves, reduce reliance on foreign exchange borrowing, and curb illicit gold exports.

At the heart of these initiatives is the Ghana Gold Board (GoldBod), established in 2025 to support the accumulation of gold reserves by the Bank of Ghana (BoG)—particularly from the artisanal and small-scale mining (ASM) sector.

Through G4R and DGPP, the BoG achieved its 2028 international reserve coverage targets in 2025, three years ahead of schedule, signalling apparent operational success.

Yet this impressive achievement has come at a cost. Although GoldBod records profitability on its books, the Bank of Ghana has incurred significant financial losses—estimated at US$214 million in nine months—linked to the structure of GoldBod’s trading model. This raises the central question: Does GoldBod owe the BoG US$214 million, or has the BoG actually lost US$214 million?

Put simply, the Bank of Ghana has already recorded US$214 million in realised losses, while GoldBod also owes additional value for undelivered gold, according to GoldBod’s published December 2025 Trade Report. These realities coexist, creating a substantial financial sustainability challenge for Ghana’s central bank.

Operational Impact of GoldBod: Success Achieved at Structural Cost

GoldBod has undeniably delivered substantial operational gains. Its aggregation strategy enabled Ghana to rapidly build reserves, formalise gold-buying operations, license actors, channel financial flows through formal channels, and support currency stability. Gold now accounts for a significantly increased portion of Ghana’s reserves—an achievement unparalleled in recent history. GoldBod is profitable, primarily driven by service fees and operational charges associated with Bank of Ghana transactions. These include a 0.5% service fee, an assay charge of 0.258%, and price-setting authority, which at times includes seasonal bonuses designed to prevent smuggling or stimulate supply.

Industry stakeholders confirm that GoldBod offered price bonuses to its licensed aggregators ranging from GHs 50 per pound to GHs 200 for the supply of gold to GoldBod’s sole aggregator, Bawa-Rock Ltd. While the initial assumption was that the dip was driven by smuggling, the evidence suggests that seasonal factors played a significant role. This period coincided with Ghana’s minor rainy season, during which many Artisanal and Small-Scale Mining (ASM) operations reduce activity. As a result, gold output typically falls compared to the dry season.

However, this very structure that drives GoldBod’s profitability also shifts disproportionate financial risk directly onto the Bank of Ghana’s balance sheet.

Understanding the US$214 Million: Loss or Debt?

The much‑discussed US$214 million does not represent money GoldBod “owes” to BoG. Instead, it reflects losses already realised by the Bank of Ghana arising from pricing gaps, off‑taker charges, service fees, and market exposures incurred during gold trading. In other words, this money is gone; it is a sunk cost and a crystallised loss in the BoG’s financial statements.

Separately, GoldBod has underdelivered gold relative to BoG funding by over GH¢3.5 billion, according to the latest published trade report. This is not yet a realised loss, but it represents significant liquidity and delivery exposure. If gold prices fall before delivery, or if delivery fails altogether, BoG risks further losses. Thus, both realities coexist: the BoG has already incurred losses and remains exposed to additional risk.

Why BoG Is Absorbing Losses While GoldBod Profits

This paradox arises from structural flaws. GoldBod controls pricing (it sets prices it “desires” to buy gold) and has at times applied bonuses that increased BoG’s acquisition cost. GoldBod also charges an ad valorem tax of 0.5% in the form of service fees, despite being financed by the BoG. There are limited firm delivery timelines, and GoldBod effectively enjoys guaranteed margins while the central bank bears commodity price risk and operational exposure.

This creates a situation in which wealth is effectively transferred from the central bank to GoldBod, thereby undermining the BoG’s financial independence while strengthening GoldBod’s profitability.

Financial Sustainability Risks to BoG

GoldBod poses four principal risks to the Bank of Ghana:

a)Realised financial losses already incurred.
b)Liquidity risk arising from undelivered gold worth billions of cedis.
c)Commodity price exposure tied to the growing concentration of gold in reserves.
d)Governance and market distortion risks arising from BoG’s expanded operational role.

No central bank can sustainably absorb such risk without compromising its balance sheet resilience and policy independence. Should the Trade Continue? The answer is a BIG YES, but only under a radically restructured framework. GoldBod has proven valuable to Ghana’s reserve management strategy and macroeconomic stabilisation, but continuation must prioritise protecting the central bank from insolvency‑risk exposure.

Policy and Structural Solutions

One of the foremost priorities in addressing the financial risks associated with the Bank of Ghana’s involvement in gold trading should be to safeguard the central bank’s balance sheet. Under the 2025 national budget, the government explicitly allocated a cedi equivalent of US$279 million as a revolving fund for the Ghana Gold Board (GoldBod) to enable it to purchase and export gold from small-scale miners, thereby enhancing foreign exchange reserves and formalising the gold sector (Graphic). However, these budgeted funds have not been released, and the Bank of Ghana has, in practice, stepped in to pre-finance GoldBod’s operations, exposing it to significant financial losses and monetary financing concerns (MyJoyOnline).

To protect the BoG’s financial integrity and its ability to conduct monetary policy independently, losses arising from national strategic programmes, such as GoldBod, should be transparently recognised and charged to the national budget rather than absorbed by the central bank’s books. Releasing the budgeted US$279 million directly to GoldBod through the national budget would align financing with legislative intent, reduce the need for BoG balance-sheet support, and ensure that strategic gold purchases are financed in a manner that complies with IMF programme conditions and global central-banking best practices.

Secondly, GoldBod’s pricing model and fee structure must be rebalanced. Fees charged to the central bank should be reviewed, discretionary bonuses replaced with rational, transparent policy mechanisms, and the risk of monopoly pricing reduced. At most, a 0.5% charge by GoldBod, which will also include the Assay fees, will be preferable. The current total fees of 0.758% incurred by BoG on trading via GoldBod are pretty steep and unfair to the national kitty. Why is that fee too steep? Let me explain this further. The BoG is providing funds to GoldBod to purchase gold for Ghana. However, GoldBod sets the price of gold in the domestic market and, at times, adds an arbitrary bonus. It then aggregates the gold for the BoG. By aggregating alone, GoldBod charges a 0.5% service fee. Subsequently, GoldBod will charge the BoG an additional 0.258% to confirm the purity and weight of the gold it aggregated for the BoG.  That’s the layman’s way to explain what is happening currently.

Third, strict delivery discipline must be enforced. Pre‑financing caps should be imposed on the central bank when the need arises to finance GoldBod’s operations due to delays in releasing budgetary allocations. Delivery timelines must be enforced, penalties applied, and independent audits mandated. Performance guarantees must become standard in the BoG and GoldBod’s operations.

Fourth, to minimise risk, the BoG should consider engaging other Self-Finance Aggregators for the G4R and DGPP programmes. The GoldBod’s website currently lists 51 Self-Finance Aggregators (SFAs). GoldBod has been silent on the performance of these aggregators. Do we need to scrap the SFA licensing regime? Why is the regulator, GoldBod, the only entity aggregating Gold for BoG? The BoG can consider a 50% pre-finance for high-performing SFAs. They receive 100% payment upon delivery of the requested volume. This model could also incentivise local banks to participate in domestic gold purchase initiatives.

Finally, strategic clarity is needed. GoldBod must function as an aggregator and policy instrument, not as a profit‑maximising entity at the expense of the central bank. The BoG should gradually reduce direct exposure and restore normal market functions.

Conclusion

GoldBod represents one of Ghana’s most significant recent successes in reserve accumulation and macroeconomic stabilisation.

However, its current operating structure imposes heavy and unsustainable financial burdens on the Bank of Ghana.

The Bank has already incurred US$214 million in losses while remaining exposed to billions in additional delivery risk.

With the right reforms, Ghana does not need to choose between strategic gold accumulation and central bank financial stability. Both are achievable.

GoldBod can continue to power Ghana’s reserve engine—but only if policy restructuring ensures that success is not purchased at the expense of the very institution responsible for monetary stability.

“GoldBod functions like a high-performance engine that has successfully accelerated Ghana’s reserve vehicle to its destination years early; however, the engine is currently running at a high financial cost to the car’s battery (the BoG), requiring a shift to a more sustainable power source (the national budget) to avoid a long-term breakdown.”

By Gabriel Nomotsu Teye-Ali
Finance and Natural Resource Analyst
+233-240-268-668
teyeali@gmail.com

It also wants the easing of the base lending rate to remain gradual.

The Fund disclosed this in its Staff Review of Ghana’s Bailout Programme.

“With inflation pressures subsiding and the recent appreciation of the Cedi, the Bank of Ghana
(BoG) has appropriately begun a cautious monetary easing cycle. Any further easing should
remain gradual and data dependent”.

Since January 2025, the Bank of Ghana has cut the policy rate by 9.0 percentage points to 18.0%.

In collaboration with the Fund, BoG has developed and implemented a new structured foreign exchange operations framework to intermediate FX flows and smooth excessive market volatility, while accumulating international reserves.

The Fund said “The authorities have taken decisive steps to safeguard financial stability, including by implementing the strategy to restructure and reform state-owned banks, closing gaps in the crisis management and resolution framework, and pursuing a multi-pronged approach to reduce non-performing loans”.

The Bretton Woods institution further pointed out that the authorities have taken decisive steps to safeguard financial stability, including by implementing the strategy to restructure and reform state-owned banks, closing gaps in the crisis management and resolution framework, and pursuing a multi-pronged approach to reduce non-performing loans.

It added that important progress has been made to strengthen Ghana’s governance and public sector efficiency in line with the recently published Governance Diagnostic Assessment report, highlighting, that efforts to improve transparency and oversight need to continue, particularly related to public disclosure requirements and management of State-Owned Enterprises in the gold, cocoa, and energy sectors.

It stressed that ambitious structural reforms to help create an environment more conducive to private sector investment, and to enhance governance and transparency remain key to boosting the economy’s potential and underpinning sustainable job creation.

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According to a leading market and research firm, IC Securities, it expects the double-digit real policy rate to persist through the first half of 2026 as the government seeks to avert a potential second-round effect from the tariff hike.

In its analysis of the Bank of Ghana’s policy rate, it said a likely increase in the real policy rate above the 12.0% mark by the end of 2025 indicates the Monetray Policy Committee is likely to hit a pause in January 2026.

The Monetary Policy Committee of the Bank of Ghana voted by a majority decision to reduce the policy rate by 350 basis points to 18.0% at its final MPC meeting for 2025 in November.

“The magnitude of the rate cut was broadly in line with our expectation but came in 50 basis points lower than our maximum expected cut of 400 basis points. We view this deep, yet cautious, rate cut as a signal of the MPC’s continued preference for double digits real policy rate at every point in this phase of the rate cutting cycle which began in July 2025”, it said.

The cut effectively reduced the real policy rate from 13.5% (pre-MPC) to 10.0% (post-MPC), retaining the monetary stance in a very restrictive zone.

“We expect this double-digit real policy rate to persist through first-half of 2026 as the authorities will seek to avert a potential second-round effect from the tariff hike”, it added.

It concluded that the monetary stance will align with the 2026 budget statement, which note that “monetary easing will be cautious and conditional on continued stability, and the Bank stands ready to act swiftly should inflationary risks resurfaced”.

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According to the Central Bank, timely repayments and responsible application of loans are critical to maintaining financial stability.

“With increased access clearly comes greater responsibility and accountability, and borrowers must understand the agreements they sign, which is why this workshop is important. Honour the repayment obligations and apply the loans purposefully to strengthen their businesses,” Second Deputy Governor Matilda Asante-Asiedu said at a sensitisation programme on the Borrowers and Lenders Act for members of the Ghana National Chamber of Commerce and Industry.

She cautioned against misusing business loans for personal luxury, noting: “So the idea is not to take the loan and to buy the next beautiful car but it’s to take the loan and put it in the business because if you put that loan in the business, probability that the business will generate more and out of that you can then buy that beautiful car is very high.”

On his part, the President of the Ghana National Chamber of Commerce and Industry, Stephane Miezan, encouraged the Central Bank to enhance access to credit, especially for enterprises seeking capital at a time when interest rates are declining.

“The challenge is not the interest rate coming down. It is also access to finance, because if something is cheap and you cannot get it, then really it’s a zero-sum game,” he said. “So in as much as the Bank of Ghana is doing so well in putting in every effort to ensure that the cost of credit comes down, please put in every effort to make it accessible to those of us in industry and in business.”

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According to the Monetary Policy Committee (MPC) report, the Index continues to post strong gains. Industrial production, international trade activities, credit to the private sector, and consumption all contributed to the increase over the period.

The MPC noted that its latest confidence surveys, conducted in October 2025, reflected continued optimism regarding current and future economic conditions.

Additionally, Ghana’s Purchasing Managers’ Index improved due to new orders driven by the increased pace of economic activity.

“Taken together, these gains indicate that the negative output gap is closing,” the MPC stated.

The Central Bank concluded that if this momentum is maintained into December 2025, the Gross Domestic Product (GDP) growth outturn for the year will remain strong.

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According to the Central Bank, the rising cyber risks demand stronger oversight and more advanced protective systems to safeguard banks, payment service providers and millions of customers who rely on digital finance.

Speaking on behalf of Governor Dr. Johnson Asiama at the Visa–Bank of Ghana Cybersecurity Summit, Acting Head of Information Security, Daniel Klu, revealed that the Bank is rolling out a multi-layered strategy aimed at strengthening the sector’s resilience against increasingly sophisticated cyberattacks.

Mr. Klu explained that cybercriminals are adapting quickly to Ghana’s digital transformation, prompting regulators to deploy enhanced monitoring tools, tighter supervisory frameworks and targeted interventions to protect critical financial infrastructure.

“We are tracking emerging risks closely and rolling out targeted measures to bolster the security of the entire ecosystem,” he noted.

The summit brought together cybersecurity experts and industry leaders to examine fraud trends affecting digital payments and explore innovative solutions to counter them.

The Country Manager of Visa Ghana, Fabrice Konan, underscored the need for continuous vigilance, warning that trust in digital financial services depends heavily on the sector’s ability to stay ahead of cyber threats.

In a detailed presentation, Irene Auma, Visa’s Head of Risk for Sub-Saharan Africa, highlighted how artificial intelligence is transforming the fight against financial fraud.

She said AI-driven systems can detect unusual behaviour in real time, map emerging fraud patterns and flag suspicious transactions before they cause major breaches.

“Artificial intelligence gives us the speed and accuracy needed to detect fraud before it causes widespread damage,” she explained.

The Bank of Ghana says it will continue collaborating with global partners and financial institutions to build a stronger, more secure digital finance ecosystem as Ghana’s digital economy expands.

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The decision was taken after the 127th meeting of the committee ended yesterday, November 25, 2025.

Speaking at press briefing at the headquarters of the Bank of Ghana in Accra, the Governor of the Bank of Ghana, Dr. Johnson Asiama announced that majority of the members of the committee voted for the huge reduction in the policy rate.

He explained that the committee is optimistic of maintaining price stability in the economy to help keep inflation in the single-digit band.

“The bank projects a continued stable inflation profile around the target and well into the first half of next year, 2026. This is against the backdrop that current risks in the outlook to shift the path of inflation away from target have moderated significantly”, he said.

Dr. Asiama added that the prevailing high real interest rate provides some hope to ease policy to further to boost the current growth recovery efforts.

“Given these considerations, the committee, by majority decision, voted to lower the monetary policy rate further by 350 basis points to 18.0%”, he announced.

He assured that the committee will continue to monitor development and take the appropriate policy decisions to ensure sound and stable macroeconomic conditions.

He stated that the Bank of Ghana will continue to use its various monetary policy tools to check inflation and keep prices stable.

“We have one additional measure. In addition to the policy rate reduction, the bank will now return to the use of the 14 day bill as its main instrument for conducting open market operations”.

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Speaking during the 2026 Budget debate, he said the government relied heavily on sterilisation and excessive fiscal consolidation to suppress inflation.

“I dare say that without them, we were still going to achieve the same results anyway,” he claimed.

He cited data from the budget showing that the Bank of Ghana sterilised GH¢62 billion through Open Market Operations and foreign exchange auctions in 2024. According to him, the move effectively drained liquidity from the pockets of ordinary Ghanaians.

“GH¢62 billion that should have been available in the pockets of Ghanaians to spend this year has been siphoned to the Bank of Ghana,” he argued.

Dr. Boako warned that the impact would be felt sharply during the Christmas season.

“Traders will just be sitting by their products in the scorching sun with potential buyers walking around without buying,” he said, describing the situation as a direct consequence of tight monetary conditions.

He added that despite a food glut and adequate supply of goods, low disposable income means people simply cannot afford to buy.

The MP further questioned why goods with positive income elasticity of demand remain unsold.

“Why would these goods still be glutted on the market without buyers if individuals have money in their pockets?” he asked.

He urged the government to urgently release liquidity into the economy.

“The government must release this money into the economy with speed to enable people to have the money to spend,” he emphasised.

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According to the Bank of Ghana’s auction results, the government failed to meet its target yet again.

The government received GH¢3.94 billion of the total bids, but accepted GH¢3.83 billion of the bids.

A little over 77% of the bids came from the 91-day bill.  About GH¢3 billion of the bids were tendered. The uptake was GH¢2.9 billion.

For the 182-day bill, GH¢613.2 million of the bids were tendered. The bids accepted were estimated to the tune of GH¢608.2 million.  

Also, GH¢257.1 million of the bids were tendered for the 364-day bill. About GH¢254 million of the bids were accepted.  

Meanwhile, interest rates continued to rise on the yield curve.

The 91-day bill increased by 10 basis points to 11.02%.

That of the 182-day bill also shot up to 12.66% from 12.61% the previous week.

However, the yield on the 364-day bill decreased by 7.0 basis points to 13.08%.

In a release dated November 5, 2025, and a policy paper titled Ghana’s Policy Position on Virtual Assets and Service Providers, the BoG outlined Ghana’s first national framework for regulating virtual assets such as cryptocurrencies, tokens, and related technologies.

According to the Bank, a registration exercise conducted in July 2025 identified over 100 companies providing services such as exchange, wallet management, brokerage, and investment advisory to a user base of more than three million Ghanaians.

To strengthen supervision, the bank explained it will establish a Virtual Assets Regulatory Office (VARO) to oversee the sector.

The new office will coordinate with other state institutions and enforce compliance with anti-money laundering and counter-terrorism financing standards.

“The Bank recognises that virtual assets can no longer remain outside Ghana’s financial regulatory remit,” the document stated. It added that the VARO will act as a link between government oversight and the virtual assets industry, and work with agencies such as the Securities and Exchange Commission (SEC), the Financial Intelligence Centre (FIC), the Ghana Revenue Authority (GRA), and the National Communications Authority (NCA).

The announcement marks a major policy shift from the Bank’s earlier cautionary position. In 2018 and 2022, the Bank warned that cryptocurrencies were not legal tender and directed financial institutions to avoid processing crypto-related transactions. The 2025 policy moves from warning to regulation.

The Bank said Ghana’s regulatory approach will be risk-based and activity-specific, ensuring that oversight intensity matches the risks involved in each type of virtual asset service.

High-risk activities such as trading and custody will face stricter licensing rules, while low-risk services will go through simplified procedures.

The Bank reaffirmed that virtual assets will not be recognised as legal tender in Ghana. It said the new regulatory framework aims to promote innovation, consumer protection, and financial stability while reducing exposure to money laundering, fraud, and terrorism financing.

The policy paper also proposes a National Virtual Assets Literacy Initiative (NaVALI), to be developed in partnership with the SEC and the Ministry of Education.

The initiative will promote public awareness and financial literacy, especially among young Ghanaians who make up most crypto users.

Ghana’s policy direction follows international standards set by the Financial Action Task Force (FATF), the International Monetary Fund (IMF), and the Bank for International Settlements (BIS).

The move places Ghana among a small group of African countries taking structured steps to regulate digital assets while supporting innovation.

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This was contained in market data released by the Central Bank on November 5, 2025.

The latest figure represents more than a 35% increase compared to the 28.1 tonnes recorded in October 2024, highlighting continued growth in Ghana’s official gold holdings.

Details of the Bank of Ghana’s Reserve Position

According to the data, the Bank of Ghana’s total gold holdings stood at 30.53 tonnes in December 2024, meaning about 7.51 tonnes have been added between January and October this year.

A careful look at the data showed that in some cases, the amount of gold reserves added by the Bank of Ghana on a month-to-month basis went up by more than 4 percent.

Bank of Ghana’s Gold Purchase Programme

The Bank of Ghana has attributed the steady growth in its gold reserves to its Domestic Gold Purchase Programme, launched in June 2021.

The initiative aims to strengthen Ghana’s reserve position by diversifying the Central Bank’s holdings through direct purchases of gold from local mining companies.

The move was also part of efforts to help reduce the Bank’s reliance on the US dollar, which is more vulnerable to global market volatilities and shocks compared to gold.

Under the programme, the Bank of Ghana buys gold from mining firms and pays them in Ghanaian Cedis.

The Central Bank had previously raised concerns about Ghana’s low gold reserves and stressed the need to improve the situation to strengthen the country’s external position.

Governor of the Bank of Ghana, Dr. Johnson Asiama, in a recent interview with Joy Business, reaffirmed the Bank’s commitment to preserving and growing Ghana’s total international reserves.

“This move should also go a long way in helping to firmly stabilise the cedi,” he added.

Impact

The strong gold reserve position is expected to boost market confidence in the Ghana cedi, given its signaling effect and implications for the Central Bank’s ability to defend the local currency.

Some market analysts have in the past argued that Ghana’s relatively weak reserve position encouraged speculation against the cedi.

The current build-up, they say, strengthens the Bank of Ghana’s hand in maintaining currency stability and curbing speculative activities in the foreign exchange market.

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In a public notice signed by Acting Secretary Aimee Vyda Quashie, the central bank stated that all existing operators in the digital credit space must regularise their activities with the Bank by June 30, 2026.

The directive applies to all mobile loan and digital credit providers currently operating without a BoG licence. These entities are required to submit the necessary documentation and meet all licensing requirements before the deadline.

The BoG cautioned that failure to comply with the directive will attract regulatory sanctions against non-compliant companies.

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This aggressive enforcement action, effective October 30, 2025, is a crucial part of the Central Bank’s strategy to safeguard the stability of the Ghana Cedi and protect the nation’s foreign exchange reserves.

The New Repatriation Mandate: 120-Day Limit

Under the central bank’s new, tightened framework, exporters are now required to repatriate all export earnings through their nominated authorised dealer banks within 120 days of shipment.

This deadline allows for only a single possible extension of 60 days, which must be meticulously justified and officially approved by the BoG. This move replaces and repeals Section 4 of the previous Notice Number BG/GOV/SEC/2016/03, signalling a significant shift toward zero-tolerance compliance.

“All Authorised Dealer Banks shall ensure strict compliance with this notice and promptly communicate its provisions to their exporter clients. Consequently, Section 4 of Notice Number BG/GOV/SEC/2016/03 on Rules on Repatriation of Export Proceeds is hereby repealed with immediate effect,” the statement from the Bank declared.

The BoG is sending an unambiguous signal that financial indiscipline in the export sector will now attract criminal prosecution. Exporters who fail to comply with the 120-day rule risk being charged under Section 15(4) of the Foreign Exchange Act, 2006 (Act 723).

The penalties for non-compliance are steep:

• Monetary Fine: Fines of up to 5,000 penalty units.
• Imprisonment: Up to 10 years in jail.

This enforcement action aims to check the growing concern about forex leakages and unaccounted export proceeds, which have been widely cited as a contributor to periodic pressure on the local currency and limited foreign exchange liquidity.

The Central Bank has explicitly directed all authorised dealer banks to act as frontline enforcement agents. Banks are now required to:

1. Strictly comply with the new rules.
2. Notify their exporter clients of the changes.
3. Monitor export accounts closely.
4. Report any breaches or unexplained delays to the BoG immediately.

This measure forms part of the BoG’s broader raft of forex market reforms designed to tighten regulatory oversight and improve export traceability.

The goal is to ensure that all foreign currency earnings due to Ghana are properly accounted for within the formal banking system, thereby safeguarding monetary stability, improving balance of payments performance, and supporting sustainable economic growth.

Source: Joy Business

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She said the move forms part of government’s efforts to modernise the country’s financial sector and strengthen the use of technology in economic transactions.

The e-Cedi initiative was first explored in 2021 under the leadership of then-Governor Dr Ernest Addison. It is envisioned as a Central Bank Digital Currency (CBDC) that will serve as a digital alternative to physical cash.

Speaking at the launch of the 60th Anniversary Celebration of the Cedi in Accra on Tuesday, the Vice President highlighted the potential of the e-Cedi to enhance Ghana’s financial ecosystem.

“If the e-Cedi payment system is implemented, it will support the vision of a cashless economy, enhance financial inclusion, strengthen confidence in the cedi as Ghana’s sole legal tender, and ensure its continued relevance,” she said.

Professor Opoku-Agyemang noted that the rapid evolution of global finance makes innovation a necessity.

“Finance is evolving rapidly, and that is why the Bank of Ghana is developing and testing the e-Cedi — the digital form of our currency. Once fully implemented, it will modernise our payment system and secure a cashless future, ensuring the cedi retains its importance,” she stated.

The Vice President also urged the Governor of the Bank of Ghana and the Minister of Finance to work closely with businesses, banks, and innovators to ensure a smooth rollout of the new payment system.

She commended the Bank of Ghana, Deputy Governor Dr Johnson Pandit Asiamah, and Finance Minister Dr Cassiel Ato Forson for their roles in maintaining macroeconomic stability and public confidence in the national currency.

“Through prudent monetary policy and effective public engagement, the Bank has helped anchor expectations and restore a measure of credibility to our markets,” Professor Opoku-Agyemang remarked.

Source: Asantewaa Angela Amoako

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According to a leading financial research firm, IC Research, this is on the back of a further drop in inflation in October 2025.

Ghana’s annual headline inflation returned to the Bank of Ghana’s medium-term target band for the first time since August 2021. The headline Consumer Price Inflation declined sharply by 210 basis points to 9.4% year-on-year in September 2025, falling faster than IC Research’s forecast decline of 190 basis points.

The disinflation was largely broad-based as goods inflation, which accounts for 72.5% of the overall CPI basket, eased by 270 basis points to 11.2% year-on-year. The services inflation also moderated by 60 basis points to 4.8% year-on-year.

“In our view, this reflects recent foreign exchange shift to the upside and the resultant upticks in domestic energy prices.

“We view the first single-digit headline inflation in September 2025 as a confirmation that the Ghanaian economy has progressed decisively towards price stability after over four years of double-digit price increases”, IC Research explained.

“While upside risk to the near- and medium-term path looms, we believe the authorities would be minded by the need to lock in the gains with continued policy credibility. The durable moderation in inflation risk has further strengthened the case for another cut in the nominal policy rate with downside scope for domestic bond yields in 4Q2025 [4^th quarter of 2025]”, it added.

The Bank of Ghana cut its policy rate to 21.5% from 25% in September 2025, as a result of easing inflation.

Source: Joy Business

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The decline was driven primarily by reduced credit to the public sector, alongside a moderation in private sector credit flows as banks reallocated portfolios toward Government and Bank of Ghana securities.

This was captured in the 2025 September 2025 Monetary Policy Report.

Also, private sector credit flows amounted to GH¢10.710 billion in August 2025, down from GH¢14.319 billion in August 2024.

Despite this slowdown, the private sector remained the dominant recipient of credit, accounting for 95.5% of total outstanding credit in August 2025, compared with 92.7% a year earlier.

By sectoral distribution, credit flows were concentrated in the services (68.2%), commerce and finance (23.8%) and manufacturing (23.0%) sectors.

The outstanding private sector credit was GH¢91.028 billion at end-August 2025, compared to GH¢80.318 billion at end-August 2024.

In real terms, the private sector credit recorded a modest expansion of 1.7%, as against a contraction of 1.1% over the same period in 2024.

The growth in real sector private sector credit was, however, slightly above trend, with the deviation from trend widening marginally in August 2025, compared to the previous year.

Source: Joy Business

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According to him, the move is aimed at protecting consumers while fostering stronger partnerships between fintechs and banks.

Dr Asiama made this known when he addressed members of the Ghana Association of Banks at their 42nd Annual General Meeting on October 23, 2025, which also coincided with the launch of the Ghana Bankers Voice Magazine.

He noted that the Bank of Ghana’s Open Banking Framework, currently in its proof-of-concept phase, “will enable secure data sharing between banks and fintechs under clear standards for consent, privacy, and cybersecurity.”

Dr Asiama further disclosed that the Bank of Ghana is collaborating with the Securities and Exchange Commission (SEC) and the Financial Intelligence Centre (FIC), among others, to develop formal cryptocurrency regulations by December 2025.

“I am pleased to say we have finalized the bill ready for submission to Cabinet. This progress places Ghana among the first African jurisdictions to regulate digital-asset activity prudently,” he stated.

Deepening Financial Intermediation

The Governor also announced that the Bank of Ghana is working with Development Bank Ghana, the World Bank, and Afreximbank to expand access to credit and trade finance through risk-sharing facilities.

“We are aligning Ghana’s banking infrastructure with continental systems like the Pan-African Payment and Settlement System (PAPSS), which enables cross-border payments in local currencies,” he said.

He added that the Bank, with support from the International Monetary Fund (IMF), has launched a structured foreign exchange operations framework to improve price discovery, reduce volatility, and rebuild reserves.

Dr. Asiama also revealed that the central bank is developing a comprehensive Digitalisation Strategy to guide how it uses technology and data to serve the financial system more effectively.

“We are sending our teams out to the best central banks — from Singapore to London to the Philippines — to learn, experiment, and benchmark against the best, bringing global lessons home,” he disclosed.

He added that a dedicated Bank of Ghana team will soon engage with the Ghana Association of Bankers and individual banks to ensure their perspectives help shape the digitalisation strategy from inception.

AI-Driven Supervision

Dr Asiama emphasised that the central bank is committed to enhancing oversight in the banking sector through technology and innovation.

He revealed that the Bank of Ghana is investing in AI-driven supervisory tools and operationalising a Cyber Threat Intelligence Platform to facilitate information sharing between banks and fintechs.

“As banks migrate more systems to the cloud, operational resilience and third-party risk management will become as critical as capital adequacy.

“Cyber maturity is now a measure of institutional soundness, and our supervisory priorities will increasingly reflect that,” he explained.

The Governor further disclosed that the Bank is piloting an ESG and Climate-Risk Reporting Template to embed sustainability into credit and investment decisions.

“Innovation without trust will not endure, but prudence must never again be an excuse against innovation,” he stressed.

He concluded by urging commercial banks to recognise the changing nature of Ghana’s customer base.

“More than 60 percent of Ghanaians are under 35. For them, banking is not a destination — it is an experience that follows them everywhere,” Dr. Asiama stated.

Source: Joy Business

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Speaking in Washington DC at the ongoing IMF/World Bank Spring Meetings, he said the central bank has observed a shift in remittance patterns, with some inflows now routed through virtual assets and stablecoins instead of regulated financial institutions.

“Crypto is one area. We always knew that the phenomenon was there,” he said. “But as you know, as some people say, crypto is like the air we breathe. It’s around us. It’s used around us. If you don’t engage in it, you don’t know it’s going on.”

He explained that the trend became evident when official remittance inflows suddenly dropped, coinciding with a period of local currency appreciation.

The shift, he said, was partly driven by Ghana’s strengthened cedi, which reduced the local value of transfers from abroad.

“But we saw the phenomenon at play when remittances suddenly reduced; apparently, the local currency had appreciated,” Dr Asiama noted.

“And so therefore the diaspora that was sending the money, some of them, were getting lesser amounts in local currency terms. And so we saw a diversion by way of the channels of transmission. It was no longer going through the banks.”

He said the Bank of Ghana later discovered that parallel market dealers were using stablecoins and other virtual assets to transfer funds into the country.

“What we observed was that some of the parallel market dealers through which these were coming indicated to us that they were using stablecoins and what have you. And so suddenly there was that active use of virtual assets, you know, to terminate even remittance inflows,” he explained.

Dr Asiama said this development confirmed the central bank’s earlier assessment that cryptocurrency activity in Ghana was more widespread than previously recognised.

“So it confirmed our sense that it was an important area. We could not leave it just as that. We have to, you know, step up and be able to regulate and monitor these,” he said.

He revealed that the Bank of Ghana, with technical assistance from the International Monetary Fund (IMF), has since drafted a new Virtual Assets Bill to regulate cryptocurrency operations and protect the financial system from emerging risks.

“We’ve done a lot of work in the past four months to put together the regulatory environment, and I must thank the IMF again. They’ve helped us to put together a new bill to regulate virtual assets,” Dr Asiama said.

“That bill is on its way to Parliament as I speak, and so hopefully before the end of December, we should be able to regulate cryptos in Ghana.”

The Governor stressed that regulation alone will not be enough. The ability to track and monitor digital flows, he said, will be essential for maintaining financial integrity.

“But I must say that passing a law is just one step in this process. Going down the road, the ability to monitor those flows will be key,” he said.

“So therefore, we are developing the expertise, we are developing the manpower. We are putting together a new department altogether that will help us to regulate that area.”

Dr Asiama said the central bank is determined to build the institutional capacity required to oversee Ghana’s fast-evolving digital finance ecosystem.

“But yes, it is an important area,” he concluded. “We can no longer ignore it, and we are trying very hard to be able to regulate that as well.”

Source: Abubakar Ibrahim

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Speaking in an interview with the IMF during the ongoing IMF/World Bank Spring Meetings in Washington DC on October 16, he said recent interventions by the Bank of Ghana were temporary measures to cushion the market during a period of heavy outflows and lumpy payments.

“Yes, there were allegations about whether we were intervening in the market,” he said. “But that was not exactly the case.”

He explained that between the second and third quarters, the central bank had to meet large financial obligations, including billions of dollars in arrears owed to Independent Power Producers (IPPs).

The period also saw some domestic debt exchange bondholders deciding to exit their investments following the appreciation of the cedi.

“There were all these large arrears in payments to some of the IPPs,” he said.

“And we also had some of the domestic debt-affected bondholders that wanted to exit. Because the currency had appreciated, they felt it was the right time to take up their investment. We had to allow them to go.”

Dr Asiama said the Bank of Ghana was compelled to make significant payments between July and August to settle those obligations, leading to perceptions that it was heavily intervening in the FX market.

“All these inflows accrue to the central bank, and it was happening at the time when we saw some decline in remittance inflows,” he explained.

“Remittance inflows are another huge source of FX injection — over six billion US dollars per year. However, immediately after the currency appreciated, we saw a decline.”

He said the combination of reduced remittance inflows and large outflows caused a temporary strain on the interbank market.

“During that time, the interbank FX market had dried up, and so the central bank needed to provide that support,” he said.

Dr Asiama, however, expressed confidence that the market had since recovered. “I’m happy to say that the interbank FX market has come back,” he said.

He disclosed that the Bank of Ghana had instructed mining companies to channel all foreign exchange inflows through commercial banks.

“We have written to the mining firms, for example, to take all their inflows through the commercial banks,” he stated. “So we are beginning to see some pickup in interbank FX market activity.”

He clarified that gold inflows remain an exception but noted that the trend points to a more vibrant, self-sustaining FX market.

“What we have now is to intermediate what comes from the Gold Board, and then the rest is taken into our reserves,” he said.

Dr. Asiama gave specific figures to show that demand on the market had normalised.

“As of yesterday, we had committed to make available 150 million US dollars,” he said.

“This morning, when I checked, the market had picked up only 90 million dollars, so 60 million automatically goes into our reserves. Same thing Tuesday — we made available 150 million dollars, and the market picked up less than half that.”

He stressed that the Bank of Ghana is not over-supporting the market. “We do not over-support the markets at all,” he said.

“All we seek to do is to limit the volatilities in the markets, to ensure that we have that smooth dynamic in the market, and that’s the framework we will maintain going forward.”

Source: Myjoyonline

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The Bank of Ghana (BoG) has increased its gold reserves to 37.06 tonnes as of September 2025, marking a 21.3 percent rise since the beginning of the year.

According to data from the central bank, reserves stood at 30.53 tonnes in January 2025 and have grown steadily month after month, rising from 36.02 tonnes in August to 37.06 tonnes in September.

The steady accumulation has been largely attributed to the Domestic Gold Purchase Programme, an initiative aimed at strengthening Ghana’s foreign exchange reserves, stabilizing the cedi, and enhancing investor confidence.

In an earlier statement, the Bank explained that the programme is a key tool for diversifying reserve assets and reducing exposure to global financial volatility, thereby providing stronger buffers against external shocks.

The initiative also seeks to leverage Ghana’s gold assets to secure more affordable financing and improve short-term foreign exchange liquidity, reducing dependence on external debt markets.

Source: Joy Business

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The central bank intends to sell up to US$1.15 billion in FX for the month as part of efforts to strengthen market transparency and enhance price discovery.

According to the BoG, the sales will be conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks.

The BoG emphasized that there will be no earmarking or special conditions attached to allocations, ensuring a level playing field and transparent access for all market participants.

“The overarching objective remains clear to deepen the interbank FX market, enhance price discovery, and smooth volatility,” the Bank stated.

It added that monthly auction volumes may be adjusted based on evolving market conditions, but reaffirmed its commitment to full transparency. The BoG pledged to continue disclosing all FX market operations and outcomes in line with best international practices.

The move forms part of broader efforts by the central bank to strengthen Ghana’s FX management framework and promote stability within the financial system.

Source: James Eshun

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According to the Central Bank, this is reflecting the impact of monetary policy tightening, the appreciation of the cedi, and the ongoing fiscal consolidation.

Moreover, it said supply-side pressures have eased, reducing their contribution to food and headline inflation. In the outlook, risks to inflation are tilted to the downside.

However, the upside risks remain, including broader supply chain challenges, global trade tensions, a 2.5% upward adjustment in utility tariffs, and the introduction of a new 1.0% energy levy on ex-pump prices, which could impact inflation.

Going forward, the Bank of Ghana said the exchange rate stability is expected to persist, supported by significant improvements in the external sector. These improvements have led to the accumulation of international reserves, far exceeding the ECF-supported program target, which will further aid the disinflation process.

Additionally, factors such as a tight monetary policy stance, ongoing fiscal consolidation, and stable crude oil prices could help offset the upside risks to disinflation.

Year-on-year inflation eased to 9.4% in September 2025, fueled by a significant drop in food inflation.

It was the 9^th consecutive month decline.

Source: Joy Business

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This is compared to a growth of 44.9% a year ago.

According to the report by the Bank of Ghana, the growth was on account of a rebound in profits across the industry and recapitalisation efforts of undercapitalised banks.

Meanwhile, bills (short-term debt instruments) constituted the largest component of banks’ investment portfolio, after its share rose to 60.3% in June 2025.This was from 39.9% in June 2024.

The share of long-term securities in total investments, however, declined to 39.4% from 59.8% over the same period.

The share of equity investments remained negligible and unchanged at 0.3% during the period under review.

Asset and Liability Structure

In a related development, the asset structure of the banking industry’s balance sheet in June 2025 reflected banks’ preference for investments.

Investments (comprising bills, securities, and equity) replaced cash and bank balances as the largest component of total assets, with an increased share of 42.3% in June 2025, from 33.2% in June 2024, as banks rebalanced their portfolios in favour of higher returns on investments.

Cash and bank balances was the second largest component of banks’ assets as of June 2025, although its share in total assets declined to 28.9%, from 35.8% in June 2024.

Investments and cash and bank balances together accounted for 71.2% of total assets in June 2025, compared to a share of 69.0% in June 2024.

Net loans and advances constituted the third-largest component of total assets, recording a declined share of 19.0%, from 21.4% in June 2024.

Non-earning assets (fixed assets and other assets) in banks’ total assets recorded a marginal increase in share to 9.9%, from 9.6%, during the review period.

On the liability side, the share of deposits in banks’ liabilities and shareholders’ funds declined to 72.9%t in June 2025, from 76.1% in the corresponding period last year.

The share of borrowings rose during the period under review to 8.6% from 7.2%, reflecting the growth in total borrowings during the period.

Source: Joy Business

According to the July 2025 Monetary Policy Report by the Bank of Ghana(BoG), 2,502 job adverts were recorded as compared with 2,968 for the same period in 2024.

This indicated a decline of 15.7% year-on-year.

Similarly, on a month-on-month basis, the number of job vacancies in June 2025 dipped by 18.4% from the 3,066 jobs advertised in May 2025.

Cumulatively, for the first half of 2025, the total number of advertised jobs went up by 7.7% to 18,604.

This was from 17,278 recorded during the same period in 2024.

Meanwhile, the total number of private sector SSNIT contributors, which partially gauges employment conditions, improved marginally by 2.1% to 1,065,925 in May 2025.

This is compared with 1,044,111 for the same period in 2024.

On a month-on-month basis, the total number of private sector SSNIT contributors remained largely unchanged from the 1,067,531 individuals recorded in April 2025.

Source: Joy Business

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Market data seen by JOYBUSINESS showed that the Bank of Ghana this week, through its FX Forward Auction, offered US$ 300 million.

However, the commercial banks just accepted US$ 243 million, with a price range of GHC 12.15-12.40.

Market Response

Some commercial banks told JOYBUSINESS they expect the cedi to trade steadily against the dollar in the coming days, buoyed by the Central Bank’s intervention.

However, despite a pick-up in interbank activities since August 2025, only about US$4 million was reported to have changed hands among participants this Wednesday.

The intervention comes shortly after President John Mahama announced at a recent media engagement that the BoG had withdrawn routine interventions in the forex market, stressing the need to strike a balance between supporting exporters and not overburdening importers.

At the Monetary Policy Committee press briefing, Governor Dr Johnson Asiama assured that commercial banks have been adequately supplied with dollars to meet market demand.

Checks by JOYBUSINESS also show that the cedi’s rate of depreciation has slowed in recent weeks, though it remains unclear whether BoG’s latest intervention is the main driver.

BoG on declining FX forward auction

The Bank of Ghana had started reducing the volume of dollars sold through its FX Forward Auction programme in Q2 2025.

Market data revealed that in August 2025, BoG sold US$737 million through spot and forward auctions — representing an 18% drop from the US$900 million-plus sold in July.

Market analysts say this trend highlights BoG’s deliberate scaling back of its interventions.

Cedi Pressure to Ease Soon

The Bank of Ghana has expressed optimism that current pressures on the cedi will normalise soon, backed by new monetary measures aimed at boosting forex inflows for commercial banks.

Director of Research Dr Philip Abradu-Otoo disclosed on PM EXPRESS BUSINESS EDITION with host George Wiafe that the Central Bank’s directive requiring mining firms to channel their dollar inflows through local banks has already eased liquidity challenges.

“We have also seen remittances pick up after recent regulatory intervention, and all of these should go a long way to improve supplies on the market,” Dr Abradu-Otoo stated.

He added that cocoa inflows and expected donor disbursements in the coming months will further strengthen forex supply.

“All these inflows should go a long way to improve the supply situation when it comes to the forex market,” he stressed.

Source: Joy Business

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Speaking at the launch of a new book titled ‘Digital Financial Literacy’, authored by financial inclusion advocate Korsi Dzokoto, Dr. Mumuni said: “Financial literacy is not just a personal asset; it is a national necessity. Deepening it across all sectors will drive inclusion and enhance the stability of our economy.”

He stressed that improving financial knowledge will empower individuals and businesses to make better decisions in today’s evolving financial environment.

Author of the book, Korsi Dzokoto, explained that the publication seeks to bridge knowledge gaps in the digital finance space and ensure more Ghanaians are included in the country’s financial system.

“This book is meant to equip Ghanaians with the right knowledge and skills to navigate today’s fast-changing financial landscape and ensure that no one is left behind,” he said.

The Bank of Ghana has pledged continued support for initiatives that advance financial education, which it believes is key to building a stronger, more inclusive economy.

Source: Joy Business

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According to BoG, the decision reflects confidence in falling inflation and a strengthening economy. Yet, even as borrowing costs ease, questions arise.

Can the central bank hold the line against possible utility tariff hikes, global shocks, and the stubbornly high stock of bad loans in the banking sector?

The coming months will test whether the BoG’s bold easing stance can withstand the pressures that threaten Ghana’s hard-won stability.

From January to September 2025, the monetary policy path has swung dramatically. The year opened at 27 per cent, unchanged through February.

In March, the rate was hiked by 100 basis points to 28 per cent, where it held steady until June.

Then came the pivot: a 300-basis-point cut in July brought the rate down to 25 per cent, followed in September by an even sharper 350-basis-point reduction, settling at 21.5 per cent.

In total, Ghana has seen a net 550-basis-point drop this year, marking a clear shift from earlier tightening to aggressive easing as inflation pressures subsided and economic fundamentals improved.

The rationale is clear. Inflation has been on a steady decline for eight consecutive months, reaching 11.5 percent in August 2025, its lowest in four years.

Growth remains broad-based, with GDP expanding 6.3 per cent in Q2, and non-oil activities surging by 7.8 per cent, led by services and agriculture.

Fiscal consolidation is yielding results: the deficit narrowed to 1.1 per cent of GDP, a primary surplus was achieved, and public debt fell sharply from 61.8 per cent of GDP at end-2024 to 44.9 per cent by July 2025.

External buffers are also stronger, with a record US$6.2 billion trade surplus, reserves of US$10.7 billion covering 4.5 months of imports, and a 21 percent cedi appreciation year-to-date.

Meanwhile, the banking sector remains resilient, with a 17.7 per cent capital adequacy ratio and improving loan quality, as non-performing loans declined to 20.8 per cent.

For households, this cut promises gradually lower borrowing costs, cheaper loans, and relief for personal finance.

For businesses, it offers room to expand, invest, and create jobs. For government, it reduces financing costs and strengthens fiscal stability.

But risks remain. Potential utility tariff adjustments, external headwinds, and persistent bad loans could all undermine progress.

In short, the Bank of Ghana has made a bold gamble, balancing stability with growth. The rate cut signals optimism, but vigilance will be the price of sustaining Ghana’s fragile disinflation path and ensuring the gains of 2025 are not quickly reversed.

The writer, Prof. Isaac Boadi, is Dean, Faculty of Accounting and Finance, UPSA; and Executive Director, Institute of Economic and Research Policy

Source: Prof. Isaac Boadi

This is in line with the Bank of Ghana’s Procedures for the Issuance of Directives, 2020.

In light of this, the Exposure Draft shall be made available on the BOG’s website at www.bog.gov.gh for a period of not less than 14 days from the date of the publication of the Exposure Draft, for comments.

In a publication, the Central Bank said all comments should be sent to the Bank of Ghana via email at information.security@bog.gov.gh by 30 September 2025.

Accordingly, the Bank of Ghana shall consider all material comments received and provide a written explanation for comments that were incorporated into the final directive or otherwise.

The objective of this Directive is to create a secure digital environment for the financial services industry, fostering trust and confidence in ICT systems and ensuring the integrity of transactions conducted within the cyberspace; create an assurance framework for design of security policies and for promotion of compliance to global security standards and best practices by way of cyber and information security assessment, amongst others.

Governance

For governance, the Board of Regulated Financia Institutions (RFIs) are responsible to determine the RFI’s cyber and information security risk management strategy, approve institutional policies of cyber and information security, outsourcing, survivability, backup and recovery from cyber incidents and attacks, and disaster events, and others.

Secondly, the Senior Management of a RFI shall create the institutional framework for cyber and information security risk management and oversee its implementation and maintenance, formulate institutional policies about cyber and information security, outsourcing, survivability, backup and recovery from cyber incidents and disaster events, among others.

Cyber and Information Security Policy and Procedures

The policies for managing cyber and information security risks shall be presented to and approved by the Board.

These policy documents, according to the directive, shall cover the cyber threat environment and its potential impact on the RFI; the RFI’s approach to managing cyber and information security risks and in determining and monitoring the level of exposure to cyber and information security threats and the principles behind implementing cyber and information security measures.

In recent years, cyber-related systems and networks have been playing an increasing role in the financial sector. The financial sector relies on these infrastructures for processing transactions and transferring funds which has made them attractive and susceptible targets for cyber-attacks.

Being high-profile targets creates a distinct challenge for financial RFIs, since they must strike an optimal balance between security and maintaining efficient and reliable operations for their customers.

Source: Joy Business

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Director of Research at the BoG, Philip Abradu-Otoo, gave the assurance during a roundtable discussion with officials of the central bank and academia at the University of Cape Coast (UCC) on the theme: “Monetary Policy Responses to Exchange Rate Volatility in Ghana: Implications for Cost of Living.”

Mr. Abradu-Otoo acknowledged that complaints of forex shortages during the festive season have been a recurring concern for importers but stressed that the central bank is taking proactive measures to ensure adequate supply this year.

He further cautioned forex bureaus against trading at unapproved rates, warning that offenders would face strict sanctions.

At the same event, President of the UCC School of Development Students, Stephen Agyei, appealed to business owners and traders to reduce prices of goods and services in line with the recent appreciation of the cedi against the dollar.

He argued that while prices are often increased when the cedi weakens, consumers deserve to benefit when the local currency strengthens.

The programme also marked the official launch of the UCC School of Development Studies Alumni Association, with a call for past students to support the association’s growth.

Source: Kafui Justice

]]> https://www.adomonline.com/were-working-with-bog-to-address-fx-trading-suspension-uba-ghana-assures/ Sat, 06 Sep 2025 20:33:23 +0000 https://www.adomonline.com/?p=2575719

The institutions are Flutterwave, Cellulant Ghana, and Halges Financial Technologies

The central bank, in the notice, stated that the action was due to breaches of its updated guidelines for inward remittance services by Payment Service Providers.

On Halges Financial Technologies, the regulator stated that it is prohibited from engaging in any remittance activity until prior approval has been duly granted by the Bank of Ghana.

Reasons

The Central Bank, in the statement, argued that these sanctions are a result of multiple violations of the updated guidelines for Inward Remittance Services for Payment Service Providers, 2023.

The affected Payment Service Providers were found to have conducted unauthorised remittance activities on behalf of some Money Transfer Operators (MTOs), including Top Connect, Send App, Taptap Send, Remit Choice and Afriex, through their settlement bank, United Bank for Africa Ghana Limited (UBA Ghana).

“All remittance partnerships between these PSPs and MTOs are hereby suspended. Any bank or MTO seeking to engage the affected PSPs for remittance services in the future must reapply for approval after the suspension period has lapsed,” the regulator stated.

The Bank of Ghana also cautioned all market players to adhere strictly to the updated Guidelines for Inward Remittance Services by Payment Service Providers and all applicable foreign exchange market regulations.

It added that “non-compliance will attract further regulatory sanctions in accordance with the law.”

Source: Joy Business

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Information gathered by Joy Business indicates that earlier this week, the Central Bank through a 7-day forward auction, sold US$208 million to the commercial banks.

It initially offered US$100 million, and the amount was later increased to US$208 million.

Official results also indicated that the US$208 million auction was sold at the rate of GH¢11.80 to GH¢12.15. However, by the close of the session, quotes stood at GH¢12.05/GH¢12.15.

These auction results are coming at a time when the Bank of Ghana has not been “heavy” on the forex market in terms of dollar auctions.

Commercial Banks on Auctions

Some of the commercial banks had argued that the limited supply of dollars by the Bank of Ghana may have played a role in the current pressure on the Ghana cedi.

Others are of the impression that the development has affected some foreign exchange transactions that they undertake.

But the Bank of Ghana, on the other hand, argued that it has enough dollars to support the forex market. However, its market intervention will be strategic because the country is under an International Monetary Fund programme and may have some significant dollar debt repayments next year.

The Bank of Ghana Governor, Dr. Johnson Asiama, in an interview with Joy Business, however, assured that the regulator has taken some measures to deal with this challenge.

This includes a directive to the mining firms to release their foreign exchange inflows to the commercial banks instead of the Bank of Ghana.

He also noted that there are other measures that the Central Bank is implementing that will go a long way to deal with the liquidity pressures on the interbank market.

Forward Auction Decline 

Meanwhile, data showed that the Central Bank sold about US$737 million through its market spot and seven-day auction programme in August 2025.

However, this represented more than an 18% drop over July 2025.

For some market analysts the development indeed shows that Bank of Ghana has been reducing the amount of dollars it sells on the market over the past month.

Source: Joy Business

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The move, announced in a notice dated August 29, 2025, forms part of the central bank’s broader efforts to expand access to the financial system and deepen financial inclusion.

The BoG, however, clarified that the designation does not amount to automatic authorization or licensing of entities currently offering digital credit services.

According to the central bank, a detailed directive outlining the licensing requirements and operational guidelines for the provision of such services will be issued in due course.

The Bank urged all stakeholders, particularly institutions offering digital credit, to take note of the development.

Source: AdomOnline

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Under the revised guidelines, travellers may carry up to US$10,000 (or its equivalent) without declaration. Amounts exceeding this threshold must be declared in full using the official Foreign Currency Declaration Form (FX-5). Inbound travellers carrying over US$10,000 must also provide proof of declaration from their port of origin.

Outbound travellers carrying more than US$50,000 are required to declare the funds and provide supporting documents such as endorsed foreign exchange bureau receipts and bank slips.

Importers must submit valid documentation, including Import Declaration Forms, invoices, and contracts where applicable.

The central bank warned that failure to comply with the rules could result in immediate seizure of funds, fines, or criminal prosecution. It further emphasized that foreign currency cannot be transported via mail or cargo, and such funds will be confiscated by the state.

Source: AdomOnline

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According to IC Research, the research arm of IC Securities, it foresees a favourable crop harvest and ongoing cedi appreciation pass-through effects to sustain the disinflation to widen the real policy rate beyond the latest level of 11.3%.

“We see a strong possibility for another cut in September 2025 as favourable crop harvest and ongoing cedi appreciation pass-through sustains the disinflation to widen the real policy rate beyond the latest level of 11.3%”.

A cut in the policy rate will see a further decline in lending rates and ease the cost of borrowing.

In July 2025, the Monetary Policy Rate of the Bank of Ghana cut its base lending rate to banks by 300 basis points to 25.00%. This was after inflation had eased for five consecutive months.

IC Research revealed in its paper on Ghana’s MPC Update: Rate Cut Resumes with a Dovish Bias that the MPC’s updated forecast appears to confirm its view of a strong possibility for single-digit inflation by end-2025, although uncertainty around the 4^th quarter of 2025 utility tariff hike restrained the size of cut in its end-2025 revised inflation forecast.

“In our June 2025 inflation update, we projected policy easing to commence at the July 2025 MPC meeting with at least 300bps reduction in the nominal rate. We opined that the disinflation-induced sharp rise in the real policy rate to 14.3% (pre-MPC) has provided a wide scope for a deep cut in the nominal policy rate.

“However, we opted for a first cut of at least 300bps in July [2025] to preserve the tight stance and sustain the disinflation trend ahead of the expected steep hike in electricity tariff in 4Q2025 [quarter 4 2025]”.

It added that the MPC appeared to have echoed its view when it cited lingering upside risk emanating from global trade tensions and expected hike in utility tariff with the sustained tight policy stance as a mitigation.

Banking Sector Recovery

Meanwhile, IC Research says the banking sector recovery has neared pre-Domestic Debt Exchange Programme solvency, although asset quality may require regulatory intervention.

According to the firm, the latest banking sector data showed a sharp recovery in the industry’s average Capital Adequacy Ratio without regulatory relief to 18.2% in June 2025.

“We believe this improvement reflects the recent capital injection into the National Investment Bank by the Ghanaian Government, as most of the privately owned banks had made strong progress on capital restoration.”

Source: Joy Business

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The move comes amid mounting pressure on the cedi, forex market volatility, and concerns over illicit capital flight.

Importance of the Directive
The directive underscores the central bank’s commitment to protecting Ghana’s reserves and ensuring that forex resources are channelled into productive and transparent economic activities rather than speculative or untraceable outflows.

By tightening rules on large cash withdrawals, the BoG is also reinforcing the country’s anti-money laundering and counter-terrorism financing frameworks, which in turn boosts investor confidence and Ghana’s global financial reputation.

Implications and Advantages

• Market Stability: The measure helps curb excessive demand for cash dollars, easing pressure on the cedi and stabilising exchange rates.

• Transparency: Encouraging the use of legitimate banking channels such as wire transfers reduces the risk of illicit activities and strengthens monitoring.

• Reserves Protection: It ensures forex reserves are managed prudently and accessible to businesses and individuals with genuine needs, particularly importers of essential goods.

• Confidence Building: Investors are more likely to trust a system that demonstrates proactive measures to maintain macroeconomic stability.

Commendation of the Governor
The directive reflects the bold leadership of BoG Governor Dr. Johnson Pandit Asiama, who has consistently demonstrated foresight and resilience in navigating Ghana’s economic challenges.

By taking a firm stance, the Governor is defending the stability of the financial system and sending a strong signal of discipline and prudence.

Dr. Asiama is exhibiting the confident and decisive leadership required to steer the economy through turbulent times, showing that when leadership is cause, everything else is merely effect.

Source: Kwasi Dah

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They are urging the government to explore more innovative strategies for managing inflation.

Ranking Member on the Economy and Development Committee, Kojo Oppong Nkrumah, revealed in a Facebook post that the central bank has sterilised more than GH¢60 billion since January, citing concerns over excess liquidity in the economy.

He argued that while sterilisation can slow inflation by reducing money supply, the current scale is counterproductive.

“When that money is packed at the Bank of Ghana, it is not available for demand, and so prices won’t rise that quickly. But this is one of the artificial ways of controlling inflation,” the Ofoase-Ayirebi MP noted.

The Minority contends that the policy stifles productivity, job creation, and private-sector growth, pointing out that the amount sterilised is nearly half the Ghana Stock Exchange’s market capitalisation, which stands at just over GH¢130 billion.

Oppong Nkrumah proposed that part of the sterilised funds be redirected into productive investments such as the Venture Capital Trust Fund, providing interest-free equity financing to startups and small businesses.

He further suggested channeling funds into the stock market as zero-coupon equity financing for existing businesses to expand and create jobs.

He warned that sterilisation is only a temporary fix, as inflation may rise again once the funds return to the economy.

“This old economic orthodoxy of just sterilising money and packing it at the Bank of Ghana is not sustainable. What we need is a broader and better strategy that supports growth while managing inflation,” he said.

The Minority is urging policymakers to adopt a balanced strategy to curb inflation while promoting sustainable economic growth.

Source: AdomOnline

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The new Bank of Ghana (BoG) directive also requires commercial banks and other regulated lenders to publish the names of such defaulters twice a year, on June 30 and December 31, in at least two national daily newspapers and on their websites in a prescribed format.

These measures form part of BoG’s latest regulatory actions to curb rising non-performing loans (NPLs) and reduce risks to the profitability, liquidity, and solvency of the banking sector.

The central bank has already notified all regulated financial institutions of the directives and published explanatory notes for the public.

Defining Wilful Loan Default

Under the new rules, a borrower is deemed a wilful defaulter if they fail to repay a loan despite having the capacity to do so, divert loan funds for other purposes, or secure a loan through falsified collateral or fraudulent documentation.

Credit Access Restrictions

The directives bar regulated financial institutions from granting fresh loans to defaulters from the date the BoG approves a loan write-off.

The prohibition period will be twice the length of time between the write-off approval and the full settlement of the debt.

Borrowers listed as wilful defaulters on two or more occasions within ten years will face a mandatory five-year ban, or longer if the calculated prohibition period exceeds that duration.

The restrictions also target directors of companies found to have engaged in fund diversion, misrepresentation, falsified accounts, or fraudulent transactions.

Path to Credit Eligibility

A wilful defaulter may regain access to credit upon fully repaying all written-off loans and fees, and if the lender is satisfied with the borrower’s ability and willingness to meet future repayment obligations.

Prudential Limits on NPLs

The BoG is also enforcing stricter prudential limits, requiring banks and other financial institutions to keep their NPL ratio at or below 10% by the end of 2026.

Microfinance institutions must maintain their existing limit of 5%.

From January 1, 2027, institutions exceeding these limits will be barred from paying dividends, issuing bonuses, or expanding their loan portfolios.

Source: Joy Business

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Speaking at the 2025 GHIB CNVERGE Conference in London —under the theme ‘Rethinking Commodity Finance for Growth’ — Dr. Mumuni noted that Ghana has historically exported most of its mined gold in raw form, despite being Africa’s leading producer and one of the top 10 globally. In 2019, gold accounted for nearly 56 percent of total export earnings, yet the country added nothing to its official gold reserves that year. “This is another avenue where financing, given the place of Ghana in the mine of gold, can support the establishment of refineries and other value chain infrastructure,” he said.

“Such investments would enable the country to retain more value from its natural resources rather than exporting it almost entirely unprocessed,” he added.

The CNVERGE Conference, convened by Ghana International Bank (GHIB), brought together leaders from banking, trade finance, commodity trading, and policymaking to explore ways Africa can move beyond raw commodity exports. Sessions at this year’s event examined opportunities to leverage technology, unlock innovative financing models, and build a more integrated and competitive trade ecosystem.

Dr. Mumuni’s remarks followed the central bank’s recent initiatives in gold-backed policy instruments, including the Domestic Gold Purchase Programme (DGPP) and the Gold-for-Oil (G4O) scheme. Since launching the DGPP in June 2021, BoG has increased its bullion holdings from 8.7 tonnes to 33 tonnes, exceeding its original five-year reserve-doubling target well ahead of schedule. Officials argue that refining capacity within Ghana would not only increase export value but also support the bank’s reserve accumulation strategy, facilitate collateralised financing, and improve the integrity of the gold supply chain through local verification and certification. The proposed expansion of refining capacity aligns with a wider policy objective of moving Ghana up the value chain in commodities — a goal often discussed in relation to cocoa but increasingly relevant to gold, which remains the country’s most significant export.

Dr. Mumuni also pointed to opportunities in gold identification, storage, and trade facilitation, stressing that a coordinated effort between the public and private sectors could unlock significant economic benefits. Analysts say the move could help Ghana capture additional margins from processing, reduce logistical costs associated with exporting raw gold, and position the country as a refining hub for the West African subregion. However, they caution that building a competitive refining industry will require not only capital investment but also consistent regulatory standards and environmental safeguards.

With global demand for traceable, responsibly sourced gold on the rise, expanding domestic refining could also enhance Ghana’s reputation as a compliant and credible source of bullion — a factor that could attract more foreign investment into both mining and downstream processing. For policymakers, other participants stressed, the prospect is clear: by investing in infrastructure that keeps more of the gold value chain within its borders, Ghana stands to strengthen its trade position, improve fiscal resilience, and generate new streams of economic activity.

Source: Joy Business