As part of measures to stabilise the cedi, the Bank of Ghana has initiated plans to tighten and block all leakages in remittances inflows.

This, the central bank insists will go a long way to halt hoarding of foreign currencies, particularly the dollar, and stop speculation.

Speaking in a meeting with members of the Association of Ghana Industries (AGI), the Governor of the Bank of Ghana, Dr. Johnson Asiama called for renewed mindset about the cedi.

He urged businesses to support the Bank of Ghana to help block loopholes in the remittances sector.

"Our objective is to ensure that every dollar that is remitted is made to count," he said.

He assured that the Bank of Ghana will soon roll out a number measures to sanitise and monitor the remittances sector to ensure that every foreign currency is accounted for.

"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 channeled into the economy," he said.

Touching on measures being taken to boost the country’s gold reserves, Dr. Asiama pointed out that, the GoldBod initiative is a good step that would continue to help insulate the cedi against external pressures.

"I'm beginning to see those two things play out", he said referring to the remittances space and the establishment of the GoldBod.

“The Bank of Ghana's efforts to stabilise the cedi is expected to have a positive impact on the economy, reducing inflationary pressures and promoting economic growth. By addressing leakages in the gold sector and remittances, the central bank aims to reduce the pressure on the cedi and promote stability in the foreign exchange market”, he reiterated.

Dr. Asiama noted that the Bank of Ghana is committed to ensuring that the cedi remains stable and competitive, supporting businesses and individuals.

Concerns about remittances

In 2024, banking consultant Dr Richmond Akwasi Atuahene called for increased scrutiny of fintech companies operating in Ghana’s remittance sector.

He cited concerns about discrepancies in reported figures and potential impacts on foreign exchange reserves.

Dr. Atuahene recommended that the Bank of Ghana (BoG) commission international audit firms to conduct forensic audits on all fintech companies, retroactive to 2019.

He also suggested that the Ministry of Finance and BoG ensure fintech companies reimburse BoG’s Nostro-Accounts or authorized dealer commercial banks with all foreign exchange components accrued from international remittances.

Emphasising the potential economic benefits, Dr. Atuahene stated, “Foreign exchange from inward remittances can help reduce the current account deficit and stabilize the local currency against major trading currencies.”

His recommendations focused on enhancing BoG’s oversight capabilities through technological solutions.

“The Bank of Ghana must acquire software that can be linked with the fintech companies’ various digital apps to track, trace, and capture all inward remittances,” he proposed, suggesting the implementation of a Middleware platform using APIs and Ethernet-APL technology.

These proposals come amid growing concerns about discrepancies between World Bank remittance data and figures provided by authorized dealer banks in Ghana.

Dr. Atuahene noted, “The central bank has consistently failed to address the gap between World Bank data on inward remittances and that of the 23 authorized dealer banks for the period between 2019 to 2023.”

Referring to BoG’s 2023 Annual Report, he questioned the handling of significant remittance inflows: “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?”

While the BoG refuted claims of losing US$8 billion through inward remittances, it acknowledged a decline, stating that newly licensed MTOs and fintech companies have withheld approximately $8 billion over two years.

Dr Atuahene also called for improvements to the international remittance data framework, urging the BoG and IMF to enhance their BPM6 and RCG remittance data frameworks to better reflect the evolving remittance sector.