Ghana’s Central Bank Refutes Allegations of Forex Hoarding by FinTechs and MTOs

Ghana’s Central Bank Refutes Allegations of Forex Hoarding by FinTechs and MTOs

• Bank of Ghana Refutes Claims of Over $10 Billion Loss in Remittance Inflows

The Bank of Ghana (BoG) has dismissed allegations that FinTech companies and Money Transfer Operators (MTOs) withheld billions in foreign currency from remittance inflows, contributing to the cedi’s depreciation. A source at the central bank described recent media reports as misleading and unfounded, insisting that all remittance inflows are fully accounted for through the banking system.

This follows news articles that were published last week that licensed MTOs and FinTechs firms withheld billions, denying the country much-needed foreign exchange. The reports suggests Ghana had lost a little over US$10 billion over five years, exacerbating pressure on its struggling currency.

However, the Bank of Ghana rebuffed these claims, citing data from both the BoG and the World Bank, which indicate that remittance inflows have been increasing year-on-year rather than declining.

No Parallel Foreign Exchange System

The central bank also denied operating a dual foreign exchange system, emphasizing that Ghana’s financial ecosystem maintains a single, regulated forex regime. It clarified that it does not directly license MTOs since they are based abroad—but only authorizes partnerships between MTOs, local banks, and FinTechs to facilitate inward remittances.

“All foreign exchange inflows from remittances are credited to the nostro accounts of partner banks, ensuring full accountability,” the source said quoting the central Banks’ 2024 June statement refuting the Forex Hoarding by FinTechs and MTOs. “No Payment Service Provider (PSP) holds forex proceeds from inward remittances.”

Regulatory Oversight and Compliance

Addressing concerns about FinTechs’ role in remittance services, the BoG referenced its Updated Inward Remittance Guidelines (2023), which require that all remittance proceeds be routed through local partner banks’ nostro accounts. The guidelines, issued under the Foreign Exchange Act, 2006 (Act 723) and Payment Systems and Services Act, 2019 (Act 987), strictly limit FinTech involvement to inward remittances only banning them from handling outbound forex transactions.

The BoG also refuted claims that remittance inflows were untraceable in Ghana’s Balance of Payments (BoP) data, stating that all foreign exchange transactions, including those from FinTech-facilitated remittances, are accurately captured and reported.

The audit comes amid a surge in remittance inflows, which outpaced foreign direct investment (FDI) in 2024. According to the Bank of Ghana’s January 2025 Summary of Economic and Financial Data, total recorded remittances reached $6.65 billion at the close of 2024, far exceeding the $1.73 billion in FDI received during the same period.

The BoG’s audit is expected to bolster regulatory oversight, ensure compliance, and enhance the efficiency of Ghana’s foreign exchange market.

Cedi Depreciation and Policy Measures

Ghana’s cedi has struggled against major trading currencies, partly due to limited foreign exchange reserves and a constricted international capital market following the country’s debt restructuring program. However, the BoG maintains that remittance flows remain an important source of forex supply and that there is no evidence linking FinTechs or MTOs to any disruption in forex availability.

“The regulatory framework ensures that remittance inflows support the local economy,” the BoG also stated in its June 2024 statement. “Assertions that FinTechs and MTOs are withholding foreign currency from the system are not grounded in fact.”

With remittances contributing significantly to Ghana’s forex reserves, the BoG continues to monitor and enforce compliance among banks and FinTechs.

As the country navigates post-debt restructuring economic challenges, authorities emphasize the importance of a transparent and well-regulated financial system to ensure continued forex inflows.

Despite the current economic difficulties, Ghana remains a key recipient of diaspora remittances, a vital source of foreign exchange that supports households and businesses. The BoG reaffirmed its commitment to maintaining stability in the remittance sector while addressing concerns over foreign exchange liquidity and regulatory compliance.