IMF Endorses Bank of Ghana’s Reinforced Forex Regulations to Stabilize the Cedi
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The International Monetary Fund (IMF) has expressed strong support for the Bank of Ghana’s (BoG) recent measures aimed at tightening foreign exchange (forex) regulations, describing them as essential for safeguarding the local currency and strengthening financial integrity.
Speaking at a press briefing in Washington, D.C., on September 11, 2025, IMF Communications Director Julie Kozack explained that the BoG’s efforts are not only targeted at stabilizing the cedi but also aligned with international best practices on anti-money laundering and financial transparency. She stressed that these measures are designed to reinforce the cedi’s position as Ghana’s sole legal tender.
The local currency has recently come under mounting strain, sliding to GH₵12.15 against the U.S. dollar. In response, the Bank of Ghana issued a series of directives in August to curb forex indiscipline and restore market confidence.
Among the measures introduced were:
- Remittance guidelines: Ensuring transfers are routed through approved and transparent channels.
- Over-the-counter restrictions: Preventing companies without operational accounts from conducting cash-based forex withdrawals.
- Foreign pricing rules: Reaffirming that goods and services in Ghana must be priced in cedis, not foreign currencies.
The central bank emphasized that these actions are consistent with global standards to counter illicit financial flows while encouraging remittances and trade to pass through formal, regulated avenues.
The BoG reiterated its prohibition on unlicensed forex dealings and black-market transactions, warning businesses and individuals against quoting or receiving payments in foreign currencies. Under Ghana’s Foreign Exchange Act, 2006 (Act 723), violations, such as issuing receipts or advertising in dollars, are illegal.
In addition, travelers carrying more than $10,000 or its equivalent in other currencies are required to declare such funds, with failure to do so constituting a breach of the law.
Governor of the Bank of Ghana, Dr. Johnson Asiama, clarified that the current enforcement drive is not the introduction of new regulations but rather a tightening of existing ones.
“These are not new issues,” he said, “but the difference now is that we are closing loopholes, enhancing supervision, and enforcing compliance more rigorously.”
The IMF has welcomed these interventions, pointing out that such discipline is crucial for restoring confidence in Ghana’s financial markets. According to Kozack, robust oversight of forex activities will promote greater transparency, reduce risks linked to money laundering, and help ensure the resilience of the cedi.
With the currency under sustained pressure, the success of these policies will be closely watched in the months ahead. Both the IMF and BoG remain confident that stricter enforcement of forex rules can serve as a cornerstone for long-term currency stability and economic integrity in Ghana.