Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has affirmed that he is under no pressure to unilaterally reinstate the licences of banks whose operations were terminated during the country’s banking sector cleanup.

Addressing journalists at the 125th Monetary Policy Committee (MPC) press conference held in Accra on Wednesday, July 30, Dr. Asiama responded to a question from Citi Business News’ Nerteley Nettey Adjaho, stressing that any potential reinstatement must adhere strictly to legal and institutional protocols.

“Not at all,” Dr. Asiama stated in response to whether he felt pressured to restore licences. He emphasized that such decisions fall beyond the discretion of the Governor and must be guided by legal rulings and the approval of the Bank’s Board of Directors.

“Remember, the resolution framework is still in effect. When I assumed office, substantial progress had already been made. Some of the cases are currently in court, while others are going through settlement procedures. The process is ongoing, and we are committed to following it accordingly,” he noted.

Dr. Asiama further elaborated on the steps required for any potential reinstatement:

“If, for instance, a court issues a directive, the Board of the Bank of Ghana would review and act accordingly. However, from my position as Governor, there is absolutely no pressure to restore any licence unilaterally.”

This clarification comes in the wake of a political promise made by former President John Dramani Mahama during the 2024 general election campaign. In his acceptance speech at the University of Development Studies on May 15, 2024, after securing the National Democratic Congress (NDC) presidential nomination, Mr. Mahama pledged to enhance local participation across key sectors including banking, telecommunications, tourism, mining, agriculture, and manufacturing as part of efforts to grow the economy and create sustainable jobs for the youth.

The banking sector cleanup, launched in 2017, was aimed at sanitizing and stabilizing Ghana’s financial system. As part of the reform, the central bank raised the minimum paid-up capital requirement for commercial banks from GHS120 million to GHS400 million. This regulatory adjustment led to the collapse or consolidation of several financial institutions that failed to meet the new capital threshold.

In total, the Bank of Ghana revoked the licences of nine local banks, 23 savings and loans companies, 347 microfinance institutions, 39 finance houses, and 53 fund management firms.

Among the collapsed banks were UniBank, The Sovereign Bank, The Beige Bank, Premium Bank, The Royal Bank, Heritage Bank, Construction Bank, UT Bank, and Capital Bank.

While the central bank defended the move as essential to restoring confidence and resilience in the financial sector, critics argued that several of the affected institutions could have been restructured or supported to preserve jobs and maintain indigenous ownership within the sector.

Finance Minister Dr. Cassiel Ato Forson has revealed that the much-touted “Gold for Oil” policy under the previous government was not a true barter arrangement as publicly claimed.

Speaking on JoyNews’ PM Express, Dr. Forson dismissed the policy as a facade, stating that the Bank of Ghana (BoG) simply paid suppliers in dollars—contrary to the narrative that Ghana exchanged gold directly for petroleum products.

“It didn’t work properly. The Bank of Ghana was paying in cash—dollars—not gold. There was never any gold-for-oil barter. Never,” he emphasized in a direct response to host Evans Mensah.

The former administration had promoted the policy as a groundbreaking solution to stabilize the cedi by reducing demand for foreign exchange. However, Dr. Forson said the reality was far less innovative.

He explained that a supplier based in the United Arab Emirates provided fuel through the Chamber of Bulk Oil Distributors (CBOD). The CBOD paid in cedis, and the BoG converted that into dollars to complete the transaction. “Pure trade. Nothing like the barter they portrayed,” he said.

Confirming with BoG officials, Dr. Forson noted that although the central bank had been increasing its gold reserves, it had no direct link to the oil purchases.

The Bank of Ghana (BoG) has issued a public warning about the operations of several Money Transfer Organisations (MTOs) that are conducting business in Ghana’s remittance and foreign exchange markets without the required authorization.

In a statement released on Friday, June 27, the central bank disclosed that it had identified multiple entities operating in violation of existing financial regulations. The BoG cautioned individuals, commercial banks, Dedicated Electronic Money Issuers (DEMIs), and Enhanced Payment Service Providers (EPSPs) to avoid transacting with these unlicensed organisations.

The unauthorised MTOs listed by the BoG include:

1. ACE Money Transfer

2. Remit Union

3. Remit Home

4. Roze Remit

5. Monty Global

6. Nairagram

7. i-Transfer

8. Hurupay

9. Eversend

10. Izi Send

Citing Section 3.1 of the Foreign Exchange Act, 2006 (Act 723), the BoG emphasized that no individual or entity may deal in foreign exchange without a valid license. Additionally, Section 15.3 of the Act mandates that all international money transfers to and from Ghana must be processed through a licensed and authorised service provider.

The central bank reaffirmed its dedication to maintaining the integrity of Ghana’s financial system and urged the public to conduct all foreign exchange and remittance transactions exclusively through licensed institutions.

The full statement from the Bank of Ghana can be found below.