BoG is finalising framework to regulate Virtual Asset Service Providers – Governor


 The Bank of Ghana (BoG) is finalising a comprehensive regulatory frame­work to supervise Virtual Asset Service Providers (VASPs), including cryptocur­rency exchanges and digital asset platforms.

The Governor of BoG, Dr Johnson Pandit Asiama, disclosed this at the Graphic Business/Stanbic Bank Breakfast Meeting in Accra on Tuesday.

The move, he explained, was part of broader efforts to ensure digital innovations in the financial sector did not undermine foreign exchange control and macroeco­nomic stability.

“The new framework will bring digital asset platforms under formal oversight, aligning them with Anti-Money Laundering and Countering the Financing of Ter­rorism (Anti Money Laundering/Countering of Financing Terror­ism) rules,” Dr Asiama stated.

Themed “Sustaining Forex Gains: Business and Econom­ic Impact,” the event brought together policymakers, financial sector leaders, and captains of industry to deliberate on how to translate recent improvements in Ghana’s forex position into long-term economic gains.

According to Dr Asiama, Ghana had reached a “critical turning point” in its economic recovery after enduring shocks from the domestic debt exchange programme, global financial tight­ening, and fiscal slippages.

“Through decisive reforms—fiscal, monetary and institutional the cedi has not only stabilised but appreciated by over 42 per cent year-to-date as of June 2025,” he said.

He attributed the performance to prudent monetary policy, co­ordinated fiscal consolidation and renewed investor confidence.

“Gross international reserves now stand at $11.1 billion, provid­ing 4.8 months of import cover, up from $8.98 billion at the end of last year,” he said.

The country, Dr Asiama said recorded a trade surplus of $4.14 billion in the first four months of 2025, largely driven by increased gold, cocoa and oil exports.

While commending the mac­roeconomic gains, the Governor warned that “sustaining forex gains is a far more complex task than achieving them,” emphasis­ing the need for continuous policy coordination and stakeholder collaboration.

He identified key risks in­cluding Ghana’s overreliance on commodities, price volatility, and persistent dollarisation in sectors such as real estate and education.

“Too many businesses con­tinue to price in dollars despite transacting entirely within Ghana. This not only violates legal tender laws but also undermines confi­dence in the cedi,” he cautioned.

The Governor also lamented the low reinvestment of forex earnings locally.

“While export receipts have risen, a significant portion is either held offshore or not chan­nelled back into productive activ­ity at home,” he said, noting that “Improving domestic forex reten­tion and circulation is essential to building a resilient economy.”

Dr Asiama urged businesses to internalise forex risk management within their corporate strategy and planning.

“Do you understand your currency exposure across the value chain? Do you have a hedging or pricing mechanism for exchange rate fluctuations?” he asked, stressing that such issues must move beyond the finance department and be considered at the boardroom level.

He further encouraged firms that invoice in cedis and reinvest export earnings locally to adopt these practices as “long-term strategies for profitability and resilience,” adding that such firms should be supported with tailored credit products, forex liquidity facilities and public procurement incentives.

Touching on the role of the financial sector, Dr Asiama said the BoG would continue to deepen the forex market by expanding forward auctions and encouraging the use of hedging tools such as swaps and forwards to manage forex exposure and reduce volatility.

He said the introduction of the eCedi was crucial in sustain­ing the stability of the cedi.

“The ongoing rollout of the eCedi will be integrated with retail payment ecosystems to ensure that even in a digital econ­omy, the cedi remains central,” he stated.

The Governor said macro­economic stability was a public good as it helped tame inflation and must, therefore, be seen as a shared responsibility

 BY KINGSLEY ASARE


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