The Bank of Ghana (BoG) has introduced stricter settlement requirements for inward remittances, directing that funds must be credited to beneficiaries within one day and converted using a more transparent exchange rate.
The measures, contained in the Updated Guidelines for Inward Remittance Services by Payment Service Providers, are designed to improve efficiency, protect consumers and ensure greater oversight of foreign exchange inflows.
For the first time, settlement banks handling inward remittance flows will be required to use the average Bloomberg US$/GH¢ bid–ask range to convert funds into local currency – replacing the previous practice of relying solely on the opening bid rate.
The guidelines also impose a 24-hour deadline for crediting remittance beneficiaries with their cedi equivalent.
“Settlement banks must use the Average Opening Bloomberg USDGHS Regional (REGN) bid–ask range or the corresponding Currency Pair Rate range on the day the transfer is received, or as may be prescribed by the Bank of Ghana for same-day conversion of settlement funds into local currency,” the directive read.
“Credit the local settlement account of the EPSP or DEMI with the Ghana cedi equivalent of inward remittances payable to beneficiaries within twenty-four (24) hours,” it added.
Faster payments, greater transparency
The shift to an average bid–ask rate is expected to reduce disputes and perceived inequities in foreign exchange conversion. By requiring that beneficiaries receive their money within 24 hours, the central bank aims to reinforce trust in digital and mobile money channels – which have increasingly become the preferred medium for remittance recipients.
The new approach replaces earlier provisions under the 2023 framework, which only mandated conversion at the opening Bloomberg REGN bid rate.
The Bank noted in its explanatory notes that: “The UGIR 2025 has changed the rate at which conversion of remittances inflow shall be done from the Opening Bloomberg REGN bid rate to the average Opening Bloomberg REGN bid-ask range.”
By widening the reference point, the regulator noted that it expects settlement banks to deliver a more accurate reflection of market conditions and minimise the risk of arbitrage.
Implications for providers
For Dedicated Electronic Money Issuers (DEMIs) and Enhanced Payment Service Providers (EPSPs), the rules introduce tighter reconciliation and monitoring requirements.
Funds credited to beneficiaries must be reconciled and matched within 72 hours, with settlement accounts kept operationally distinct from other accounts.
Settlement banks themselves face stricter obligations as they are barred from honouring any requests other than payments to beneficiaries and must report any violations or suspected violations to the central bank. In addition, all inflows and outflows of settlement accounts must comply with anti-money laundering and counter-terrorism financing standards.
Consumer benefits
The regulator’s reforms come against the backdrop of growing reliance on remittances as a household lifeline.
BoG data show that in 2024, remittance into the country hit US$6.65billion – approximately four times the US$1.73billion in Foreign Direct Investment (FDI) during the period and around 6 percent of Gross Domestic Product (GDP).
This is consistent with recent trends which have seen personal remittances received as a share of GDP grow from 5.2 percent in 2019 to 6.4 percent in 2023 – despite the average charge for remitting US$200 to the region being highest in the world at 8.5 percent.
For many, these inflows are a critical source of income for education, rent, healthcare and daily living costs.
Ensuring that funds arrive promptly and transparently is therefore central to both consumer protection and macroeconomic stability.
Many recipients have frequently cited delays in accessing remittance funds under previous arrangements. The combination of faster payouts and a fairer conversion mechanism is designed to increase public confidence in the formal remittance system, the central bank noted.
Wider context
These changes also reflect the Bank’s broader commitment to ensuring that the financial sector keeps pace with global standards. Regulators worldwide have increasingly sought to tighten supervision of cross-border remittances, both to strengthen consumer protection and to mitigate money laundering risks.
In a domestic context, the reforms are part of a wider package of updates which include new rules on dormant MTO partnerships, online vendor account transparency and weekly reporting obligations.
The BoG has signalled that it will not tolerate practices that compromise the system’s integrity – stating that settlement banks must “ensure that funds in the settlement accounts are used solely for payment to beneficiaries” and “not honour any request other than for payment to beneficiaries and report any violation or suspected violation to the Bank of Ghana”.
