Ghana’s Commercial Banks Set to Close Foreign Currency Accounts

In an unexpected move, several commercial banks in Ghana have signaled their intentions to close foreign currency savings accounts, leaving customers puzzled about the undisclosed reasons behind the decision.

Scheduled to come into effect on July 31, 2024, this abrupt measure has stirred concerns among account holders who are being advised to convert their foreign currencies into e-wallets or current accounts, as per reports from Adabraka-based Citi FM.

A circulated notice to clients highlighted the banks’ objective to gradually phase out these accounts, a step viewed skeptically by some customers who suspect it as a tactic to impose fees and reduce their gains amid the continuous depreciation of the Ghanaian cedi.

Though the Ghana Association of Bankers (GAB) is expected to offer clarity on the matter, aggrieved customers, venting their frustrations on various social media platforms, are questioning the feasibility of storing foreign currencies outside the banking system.

The looming development has generated speculations linking the issue to governmental and Central Bank involvement, with some attributing it to a strategy by the Akufo-Addo administration to bolster the cedi’s value against major currencies.

Reports have surfaced of businesses resorting to quoting prices in US dollars to shield themselves from the cedi’s volatility, reminiscent of the currency hoarding incident involving former Sanitation Minister Cecilia Abena Dapaah, which led to a scandal and her subsequent resignation.

As discussions emerge regarding the implications of this directive, the fate of foreign currency accounts hangs in the balance, awaiting public discourse and further deliberation.