BoG Moves to Block Leakages in Remittance Inflows as Part of Measures to Stabilise Cedi
The Bank of Ghana (BoG) has announced plans to tighten and block all leakages in the country’s remittance inflows as part of strategic efforts to halt the persistent depreciation of the Ghanaian cedi.
The move, the central bank believes, will curb speculative activities and reduce the hoarding of foreign currencies—particularly the US dollar—by ensuring every remitted dollar is properly accounted for and integrated into the formal economy.
Speaking during an engagement with members of the Association of Ghana Industries (AGI), Governor of the Bank of Ghana, Dr Johnson Asiama, called for a shift in mindset regarding the cedi, urging businesses to support efforts to sanitise the remittance sector.
“Our objective is to ensure that every dollar that is remitted is made to count,” Dr Asiama stated, noting that the central bank would soon roll out a series of measures to monitor and streamline the flow of remittances.
Without divulging specific details, he assured stakeholders of BoG’s commitment to building platforms that will enhance the traceability and utilisation of foreign currency remittances.
“I wouldn’t go into details about the platforms we intend to put in place, but our objective is to ensure that every dollar that is remitted is properly channelled into the economy,” he said.
Touching on the BoG’s broader stabilisation efforts, Dr Asiama cited the ongoing implementation of the GoldBod initiative as another critical measure to shore up the country’s reserves and insulate the cedi from external shocks.
“I’m beginning to see those two things play out,” he said in reference to the bank’s remittance strategy and the operationalisation of the GoldBod.
Dr Asiama stressed that the Bank’s efforts to stabilise the cedi are expected to have far-reaching positive effects on the economy—easing inflationary pressures and promoting overall macroeconomic stability.
Concerns Over Fintechs in Remittance Sector
The announcement by the central bank comes in the wake of mounting concerns over transparency in the operations of fintech companies involved in the country’s remittance sector.
In 2024, banking consultant Dr Richmond Akwasi Atuahene called on the BoG to intensify oversight over fintechs, citing discrepancies between reported inflows and figures from international bodies such as the World Bank.
Dr Atuahene recommended the commissioning of international forensic audits on all fintech firms operating in the remittance space—retrospective to 2019—amid suspicions that significant sums of foreign currency had not been properly accounted for.
He further urged the Ministry of Finance and the BoG to ensure that fintech companies reimburse foreign exchange proceeds accrued through remittances into BoG’s Nostro-Accounts or authorised commercial banks.
“Foreign exchange from inward remittances can help reduce the current account deficit and stabilise the local currency against major trading currencies,” he noted.
To strengthen the central bank’s oversight capacity, Dr Atuahene proposed the acquisition of advanced software and the integration of fintech apps with a Middleware platform using API and Ethernet-APL technology, to allow real-time tracking and auditing of remittance flows.
He pointed to inconsistencies in remittance figures, questioning the disparity between World Bank data and that of Ghana’s 23 authorised dealer banks from 2019 to 2023.
Referring to BoG’s 2023 Annual Report, Dr Atuahene asked, “The Governor reported that fintech companies received GH¢22 billion (US$3 billion) in 2022 and GH¢57 billion (US$5 billion) in 2023. Where were these foreign exchanges held?”
Though the BoG has denied claims of losing US$8 billion through remittances, it acknowledged that newly licensed Money Transfer Operators (MTOs) and fintechs had withheld approximately US$8 billion over the past two years.
