Banking consultant, Dr. Daniel Seddoh, has criticised the timing of a Bank of Ghana (BoG) directive to halt over-the-counter dollar withdrawals.

According to him, the move is a bad one as far as the cedi's current appreciation is concerned.

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This comes in response to remarks by BoG Board Member, Dr. Isaac Adongo, who suggested this restriction during an interview on JoyNews' PM Express.

• Read also: We haven’t received any directive to halt over-the-counter dollar withdrawals – Bankers Association

Speaking on JoyNews Prime, Dr. Seddoh questioned the rationale behind such a policy while the local currency shows strength.

"We're saying that the cedi is appreciating. So what we need to do is to continue on that path so automatically, people will show more interest in the cedi than the dollar," he stated.

The financial expert raised three major concerns about the proposed measure.

First, he emphasized the poor timing, noting it contradicts the current positive trend of the cedi's recovery.

Second, he explained that dollar savings reflect rational economic behavior, with investors seeking stability and wealth preservation. Third, he stressed that banks must maintain reciprocal obligations - if they accept dollar deposits, they should honor dollar withdrawals.

"So what we need to do is to go on that path so automatically, people will show a lot more interest in the cedi than the dollar. Now people save in dollar or put dollar in the bank, because they are rational beings. They are looking for stability. They want to pursue wealth preservation. They may be looking for investment opportunities. So there are good reasons why they put dollar in the bank, and if the banks can accept your dollar over the counter, equally, they must be able to pay your dollar when you go.

Dr. Seddoh saved his strongest criticism for how the matter became public.

"This is not a conversation for a board member to have on radio, even if it's being discussed in the boardroom. I think it's the wrong way to approach it," he told JoyNews.

These comments follow BoG Board Member Dr. Isaac Adongo's recent suggestion of impending withdrawal restrictions during an unaired JoyNews interview - a claim already denied by the Ghana Association of Bankers.

The Ghana Association of Bankers (GAB) has already clarified that banks have not received any official directive from the Bank of Ghana (BoG) to suspend any such move.

The GAB Chief Executive, John Awuah, said he "can say on authority that as a community of banks, we do not have any directive that bars over-the-counter withdrawal of USD or any foreign currency."

Mr Awuah stated that banks only act on formal BoG directives, not individual board members' comments.

"And another point I want to make is we need to be very careful here, and with all due respect to the board member who spoke, Dr Isaac Adongo, that as banks, we do not take instructions from individual board directors of Bank of Ghana, never. We do not take instructions from directors of the board. We take instructions from the bank, the bank here being the Bank of Ghana, under the pen of the Governor," he said on JoyNews Prime.