Commercial banks must adhere to domestic regulatory provisions, including the use of local insurance companies for import coverage, to help reduce Foreign Exchange (FX) leakages and build local liquidity, the Bank of Ghana (BoG) has said.
It also urged banks to take active steps toward public listing to enhance capital strength, transparency, and long-term growth prospects.
The Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, who disclosed this during a post-Monetary Policy Committee (MPC) engagement with the heads of commercial banks in Accra yesterday, said the move formed part of measures to sustain discipline, strengthen the financial system, and ensure that stability translates into jobs, affordable credit, and real growth for households and businesses.
“The task of consolidating stability is a shared one. Sustaining a stable exchange rate, deepening credit to productive sectors, and expanding exports require close collaboration between the Bank of Ghana and the banking industry,” he said.
Dr. Asiama encouraged all banks to design and promote export-oriented financial products, support Small and Medium-sized Enterprises (SMEs) and agribusinesses, and work with the BoG to enhance forex sourcing through formal channels.
The Governor disclosed that the BoG had extended the transition period for the Outsourcing Directive to the end of December 2025, following consultations with the Ghana Association of Banks, stressing that “this will be the final extension, and banks must ensure full compliance thereafter.”
“Looking ahead, the Bank will issue new exposure drafts on Liquidity Risk Management, Interest Rate Risk in the Banking Book, Stress Testing, and Recovery Planning. These are part of a broader framework to align Ghana’s banking supervision with international best practice,” he said.
Dr. Asiama stated that, to ensure market transparency in the forex market, beginning October 2025, the BoG would commence foreign exchange intermediation under the Domestic Gold Purchase Programme, with plans to sell up to $1.15 billion for the month.
Those sales, he said, would be conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks.
“Importantly, there will be no conditions or earmarking for allocations, ensuring a level playing field and transparent access to the market. Monthly auction volumes may be adjusted depending on evolving market conditions, but our overarching objective remains clear — to deepen the interbank forex market, enhance price discovery, and smooth volatility,” Dr. Asiama stated.
He said the BoG remained fully committed to transparency and would continue to disclose all forex market operations and outcomes in line with best international practices.
Dr. Asiama commended the banking industry for maintaining strong performance and resilience.
He said the Capital Adequacy Ratio had risen to 17.7 per cent, while Non-Performing Loans had improved to 20.8 per cent — though still elevated and requiring sustained vigilance.
“In this regard, the Bank of Ghana has introduced a number of new directives to strengthen prudential oversight and risk management, including the Bancassurance Directive, the Large Exposures Directive, and the Guidelines on Credit Concentration,” Dr. Asiama stated.
The Governor added that the return to single-digit inflation marked a new chapter in Ghana’s economic recovery, but noted, “It is not the end of the story.”
BY KINGSLEY ASARE
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