Data from the Bank of Ghana shows a 50 percent decline in remittance inflows, as many Ghanaians abroad have paused sending money for local projects.
This comes as Ghana’s economy is witnessing improved macroeconomic stability, falling inflation, and strong external reserves translating into a historic appreciation of the local currency (Cedi) which has gained strength by over 40% against the US dollar, 31% against the British pound, and 24% percent against the Euro.
The Central Bank Governor speaking at the launch of the Bank of Ghana Chair in Finance and Economics at the University of Ghana noted that, while the appreciation signals growing investor confidence and a stabilizing economy, it is also causing behavioral shifts among diaspora communities.
“The appreciation of the cedi so far, Ghanaians are interpreting this differently, and it is part of the problem. People who used to send remittances for projects have suddenly stopped, and so we have observed a near 50% decline in remittance inflows”, Governor Dr. Johnson Asiama said.
“By the way, if you are doing projects in Ghana, cement prices must also adjust, not so? Inflation is coming down so the prices of those building materials must also adjust and so therefore, on the balance it shouldn’t matter.
“Someone told me this morning [August 5, 2025], we need to do a roadshow across the top remittance originating countries … where most of the Ghanaians are…we need to go and explain to them to continue sending their monies regardless of where the exchange rate is,” Dr Asiama remarked.
Remittance Data Discrepancies
However, other factors have been associated with the remittance value on Bank of Ghana official records.
For instance, while the World Bank tracked a total of US$21.1 billion as remittances inflow to Ghana from 2018 to 2022, the Auditor General’s reports on the Bank of Ghana’s consolidated statements of foreign exchange receipts and payments within the same period tracked and accounted for only US$9.5 billion, leaving a gap of some US$11.6 billion unreported or undeclared remittances.
Also, a banking and financial consultant, Dr. Richmond Akwasi Atuahene, has revealed a staggering financial discrepancy in the country’s remittance flows, leading to a significant loss of forex to the country.
He reveals that about US$8 billion in remittances were not accounted for in Ghana’s official records in 2022 and 2023 alone. This, he says, was siphoned offshore and directly contradicts the country’s laws.
He terms this as “externalization” and it is the reason behind a wider, decade-long discrepancy of US$7.33 billion between World Bank estimates of remittance inflows and official Bank of Ghana (BoG) figures, crippling the nation’s ability to stabilize its currency and economy.
BoG strengthens monitoring of Financial Institutions
Consequently, all financial institutions including commercial banks in the remittance space have been cautioned to comply with a new reporting requirement as directed by the Bank of Ghana as stipulated in a letter to the Dedicated Electronic Money Issuers (DEMIs) and Enhanced Service Providers (EPSPs) on July 31, 2025.
The DEMIs and EPSPs and Money Transfer Operators are now expected to send to the Bank of Ghana an update on all their daily transactions in a weekly report. This will cover daily transactions from Monday to Sunday of the preceding week.
They are required to do this before noon every Monday.
The directive is expected to ensure that all these financial institutions give details on their weekly reports per transfers, detailing daily individual inward remittance transactions logs, along with the corresponding daily sum of foreign exchange credited into respective Nostro accounts.
The Bank of Ghana has indicated it will move quickly to sanction any of these institutions that fail to comply with these new reporting guidelines, adding that “failure to submit accurate and timely reports constitutes a regulatory breach under Section 42 of the Payment Systems and Services Act (Act 987) and Section 93(3) (d) of Act 930 and will attract the appropriate administrative sanctions”.
Why this Action?
The Bank of Ghana in a notice published on July 29, 2025, noted, it has been forced to take this action because some Banks, Dedicated Electronic Money Issuers (DEMIs), Enhanced Payment Service Providers (EPSPs) and Money Transfer Operators (MTOs) continue to violate the Foreign Exchange Act, 2006 and the Updated Guidelines for Inward Remittance Services by Payment Service Providers despite several cautions and reminders.
These violations, according to the Bank of Ghana include termination of inward remittances using unapproved channels.
Also, the engagement in Foreign Exchange Swaps in the context of Inward Remittance Business.
The rest are termination of remittances on behalf of institutions without prior approval from the Bank of Ghana, and applications of un-prescribed forex exchange rates.
BoG Governor on New Reporting requirements
Speaking at the recent Monetary Policy Committee press conference, the Governor of the Bank of Ghana Dr. Johnson Asiama said the move should help improve remittance inflows and foreign exchange supply as well.
“We have seen that some inflows have reduced since April this year, especially remittances, and we are investigating that as a regulator” the Governor revealed.
He added that “we want to effectively monitor these flows to ensure they accrue to the system”
The Bank of Ghana Governor was of the view that this should also help in dealing with recent pressures on the local currency, adding that “we want to ensure that all our foreign exchange gotten abroad are brought into the country”.
By Adnan Adams Mohammed
