Johnson Pandit Asiama, Governor of the Bank of Ghana, said the central bank is tightening oversight of diaspora remittances and advancing digital financial reforms to ensure foreign currency inflows fully enter Ghana’s banking system.
Speaking at a roundtable discussion themed “The Central Bank Bridge: Remit to Invest” in Alexandria, Virginia, Asiama said a key priority is addressing leakages in remittance channels that prevent foreign exchange from reaching the domestic economy.
“Not all the dollars sent home actually enter Ghana’s banking system,” he said, pointing to practices where some intermediaries retain foreign currency offshore while paying recipients locally in cedis.
Under such arrangements, some operators bypass official channels by using local currency loans in Ghana to settle remittances, effectively keeping foreign exchange outside the country while functioning informally as foreign exchange dealers.
Authorities say the practice weakens liquidity in the formal system and contributes to exchange rate volatility.
To address this, the central bank has introduced new regulations requiring remittance inflows to pass through formal banking channels, including correspondent accounts held by Ghanaian banks with foreign institutions.
These accounts serve as key conduits for foreign currency entering the Ghanaian financial system, supporting trade payments and broader economic activity.
Asiama said enforcement has been strengthened to ensure compliance, with penalties for institutions that fail to demonstrate that funds received abroad are transferred into Ghana’s banking system.
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“If every dollar sent by the diaspora enters the banking system, it will stabilise the currency,” he said, adding that improved tracking of flows has already enhanced visibility over remittances, estimated at around $7.8 billion.
The initiative forms part of broader efforts to engage Ghana’s diaspora, which remains a significant source of foreign exchange and investment.
Alongside remittance reforms, the central bank is advancing digital financial innovations to modernise the sector and improve efficiency.
These include new regulatory frameworks for fintech companies and the rollout of legislation covering digital assets and emerging payment technologies.
Asiama noted that innovations such as stablecoins are increasingly being used in remittance flows, but stressed the importance of regulatory oversight.
“As regulators, we need visibility. Once we can track the flows, we can manage risks and ensure stability,” he said.
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The central bank is also working on initiatives such as open banking, digital banking frameworks and expanded use of cloud-based infrastructure to support financial services.
A key focus is improving access to credit, particularly through digital channels.
Asiama highlighted the potential of digital credit systems to enable individuals and small businesses to access funds more easily, supporting entrepreneurship and reducing poverty.
“People should be able to raise money digitally and support themselves,” he said, noting that high borrowing costs—often exceeding 30 percent—remain a constraint in Ghana.
The reforms come as the central bank seeks to strengthen macroeconomic stability and support the cedi, which has experienced periods of volatility in recent years.
Analysts say improving the transparency and efficiency of remittance flows could significantly boost foreign exchange availability and enhance monetary policy effectiveness.
As Ghana deepens engagement with its diaspora and accelerates financial sector reforms, authorities are positioning remittances and digital finance as central pillars of the country’s economic stabilisation strategy.
