BoG’s Explanation on Remittances Doesn’t Add Up – Dr. Atuahene Fires Back

BoG’s Explanation on Remittances Doesn’t Add Up – Dr. Atuahene Fires Back

• Ghana’s Missing Billions: The Remittance Discrepancy and the Bank of Ghana’s Denial

Introduction: A Crisis in Remittance Tracking

Ghana has long relied on remittance inflows as a crucial economic pillar, providing billions of dollars in foreign exchange earnings that support families, stabilize the local currency, and bolster the country’s balance of payments. Yet, recent data discrepancies have raised serious concerns about the transparency of remittance flows.

In an exclusive interview with NorvanReports, Dr. Richmond Atuahene, a renowned financial expert with over 30 years in banking and a contributor to the NorvanReports, expressed grave concerns about the Bank of Ghana’s (BoG) handling of remittance data.

“Between 2020 and 2023, Ghana saw a staggering $8.5 billion discrepancy in reported remittance inflows, which cannot be ignored,” Dr. Atuahene told NorvanReports. “The Auditor-General, Bank of Ghana, and World Bank have provided vastly different figures, and the BoG’s recent denial fails to address the real issue at hand.”

The New $8.5 Billion Discrepancy: What the Numbers Say

Remittances have historically been a pillar of Ghana’s economy, often providing more foreign exchange than key export commodities like gold, cocoa, and oil. Ghanaian expatriates, particularly in North America, Europe, and the Middle East, have continuously sent billions of dollars home, supporting families and small businesses while also playing a vital role in macroeconomic stability.

Dr. Atuahene cited official figures that illustrate the inconsistencies:

Further adding to the concerns, the Bank of Ghana’s Summary of Economic and Financial Data — January 2025 reported that total remittances for 2024 stood at $6.65 billion, marking a record high and a 30% increase from the previous year. Despite this growth, the persistent forex shortages and cedi depreciation raise questions about how these funds are being utilized within the economy.

“These numbers tell a compelling story of financial opacity,” Dr. Atuahene stated. “If the World Bank and Bank of Ghana estimate Ghana’s total remittances at $18 billion, but the Auditor-General’s report (sourced from 23 commercial banks) records only $9.3 billion, then we must ask: Where is the missing $8.5 billion, even higher than what I put out earlier?”

The Role of Fintechs and Money Transfer Operators

With the increasing role of fintech and digital payments in Ghana’s remittance sector, the traditional banking model for handling remittances has changed significantly. Unlike in the past when banks dominated remittance processing, today, a large share of transfers go through mobile money operators and fintech platforms.

According to BoG’s June 25, 2024, press release, fintech companies and Money Transfer Operators (MTOs) are not responsible for withholding remittance forex earnings. The central bank stated that “all remittance inflows are credited to the nostro accounts of partner banks of Payment Service Providers (PSPs), as such, no PSP holds any forex inflows from inward remittances.”

However, Dr. Atuahene disagrees: “There is clear evidence that some fintech companies and MTOs do not fully repatriate forex earnings. This is not just speculation; the Foreign Exchange Act (Act 723) requires all foreign exchange transactions to be processed through authorized local banks, yet loopholes in fintech regulations have allowed funds to be held offshore.”

In countries like Nigeria, India, and Bangladesh, fintech firms are tightly regulated, and remittances are mandated to flow through formal banking channels to strengthen forex reserves. Ghana, however, lacks the same level of oversight, leading to gaps in financial reporting and potential loss of forex liquidity, he stressed, as was stated in our last article published.

Economic Consequences of Missing Remittances

Persistent Cedi Depreciation

• Ghana’s currency depreciated by 27.8% in 2024, one of the worst performances in Africa. 
• Missing remittances deprive the market of much-needed forex liquidity, fueling inflation and price instability.

Declining Foreign Reserves

• Ghana’s gross international reserves stood at $8.98 billion in December 2024, providing just four months of import cover.
• If the missing remittances had been properly accounted for, the country’s reserves would have been significantly higher.

Rising Debt and Fiscal Stress

• Ghana’s public debt-to-GDP ratio remains high at 72.2%, partly due to forex shortages.
• The missing $8.5 billion could have reduced reliance on IMF bailouts and external borrowing.

Proposed Reforms: How Ghana Can Fix the Issue, according to Dr Attuahene

Conduct a Full Forensic Audit

• The Ministry of Finance and the Bank of Ghana must commission an independent forensic audit to trace all forex holdings related to remittance inflows.
• Fintechs should be required to provide full transparency on their foreign holdings.

Strengthen Regulatory Oversight

• Fintechs and MTOs must be required to submit real-time forex transaction reports to regulators.
• The Foreign Exchange Act must be strictly enforced, with penalties for non-compliance.

Introduce Diaspora Remittance Bonds

• Offering Diaspora Remittance Bonds can incentivize the use of formal banking channels, boosting forex liquidity.

Improve Data Transparency and Tracking

• A centralized digital system should track remittances in real time, preventing discrepancies.
• Greater coordination between the Bank of Ghana, fintech companies, and the World Bank will ensure more accurate reporting.

Final Thoughts: The Need for Financial Accountability

Dr. Atuahene concludes the interview: “Ghana cannot afford to ignore the $8.5 billion gap in remittance data. The BoG’s response lacks transparency, and stronger regulatory measures must be implemented immediately.”

“These are not just numbers on a spreadsheet; they represent billions in potential economic stability for Ghana. Every dollar sent home must be fully accounted for.”