Several commercial banks in Ghana have reintroduced charges on foreign currency accounts, a move that has left many customers dissatisfied. These fees, which had been suspended under regulatory pressure, are being implemented as banks face increasing operational costs tied to new regulatory directives from the Bank of Ghana.
In recent days, some banks have informed their customers through text messages and emails about the reintroduced fees, which vary based on the type of currency and the account balance. Reports suggest that some account holders have been charged as much as $5 for maintaining balances exceeding $100, with certain fees potentially reaching up to $20.
These charges are being added to the existing 3% fee on withdrawals from foreign exchange accounts, further burdening account holders. The reintroduction of fees comes in the wake of earlier confusion, when in July 2024, several banks reportedly began processes to close personal foreign currency savings accounts. Customers were asked to shift their funds to e-wallets or current accounts. However, the Ghana Association of Banks denied these closures, stating that no such directive had been issued.
The Regulatory Backdrop
The key driver behind the banks’ decision to reinstate fees is a regulatory directive from the Bank of Ghana. The central bank recently increased the cash reserve ratio, mandating that banks hold a larger portion of their foreign exchange reserves in cedis, Ghana’s national currency. This move has significantly raised the costs associated with maintaining foreign exchange accounts for banks, forcing them to pass on some of these expenses to their customers.
According to financial analysts, this policy shift is intended to stabilize the country’s currency by reducing the reliance on foreign reserves. However, the immediate consequence has been a surge in operational expenses for banks, which are now struggling to manage these costs without affecting their profitability.
Impact on Customers
For many account holders, the new charges are proving to be a source of frustration. The combined effect of the reintroduced fees, withdrawal charges, and the current volatility in exchange rates has led some customers to reconsider whether maintaining a foreign currency account is worth the cost.
“I’ve been charged $5 just for keeping my money in the account,” said one customer. “When you add the 3% withdrawal fee, it’s becoming too expensive to manage these accounts.”
The dissatisfaction has led to growing uncertainty about the future of foreign exchange accounts in Ghana. Some customers are already exploring alternatives such as converting their foreign currencies into cedis or utilizing digital wallets to avoid the accumulating fees.
Bank Responses and Stakeholder Engagement
Despite the outcry, banks have called for patience from their customers. They argue that the reintroduction of charges is a necessary step to cope with the increasing costs driven by the central bank’s policy changes. Several banks are reportedly in talks with stakeholders and regulators to find a way forward that balances operational sustainability with customer satisfaction.
“We understand that these changes are frustrating for our clients, but the reality is that we are operating under new regulations that have significantly increased our costs,” said a spokesperson from one of the affected banks. “We are committed to working with all parties involved to find a solution that works for everyone.”
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Looking Ahead
The recent developments mark a turning point in how foreign currency accounts are managed in Ghana. As the financial landscape adjusts to regulatory pressures and operational challenges, both banks and their customers will need to adapt. While banks navigate these changes, account holders are being urged to stay informed and explore all available options for managing their foreign currency holdings.
Efforts by Citi Business News to obtain a formal response from the Ghana Association of Banks regarding these developments have so far been unsuccessful. However, industry experts suggest that the reintroduction of fees may be part of a broader effort to strengthen the financial sector’s resilience against external shocks and currency fluctuations.
For now, the situation remains fluid, and both banks and customers will need to remain vigilant as the financial sector continues to evolve in response to regulatory shifts.
As the situation develops, foreign currency account holders in Ghana will be closely watching to see how banks and regulators balance operational costs with customer satisfaction in the coming months.