The Bank of Ghana says it is stepping up measures to ensure remittances from the diaspora flow through formal banking channels, in a bid to strengthen foreign exchange inflows and stabilise the cedi.

Speaking at a roundtable discussion titled “The Central Bank Bridge: Remit to Invest” in Alexandria, Virginia,  Johnson Pandit Asiama, Governor of the BoG said a key challenge has been the diversion of remittance funds outside Ghana’s financial system.

“Not all the dollars sent home actually enter Ghana’s banking system,” he said.

He explained that some operators retain foreign currency abroad while paying beneficiaries in cedis locally, using informal arrangements that bypass official channels.

Such practices, he said, reduce the amount of foreign exchange entering the banking system and undermine efforts to manage currency stability.

To address this, the central bank has introduced regulations requiring remittance inflows to be credited to correspondent accounts held by Ghanaian banks with foreign institutions.

“These monies are supposed to be paid into correspondent accounts. Once that happens, they enter the Ghanaian banking system,” Asiama said.

He added that institutions must now demonstrate that funds received abroad are transferred into the domestic system or face penalties.

The reforms are part of broader efforts to improve transparency and tracking of remittance flows, which the central bank estimates at about $7.8 billion.

Asiama said improved monitoring may partly explain recent increases in recorded remittance volumes.

The central bank is also advancing digital financial reforms, including new frameworks for fintech firms and legislation covering digital assets.

He noted that emerging technologies such as stablecoins are increasingly being used in remittance transactions, but stressed the need for regulatory oversight.

“As regulators, we need visibility. When we can see the flows, we can manage them better,” he said.

The Bank of Ghana is also working on initiatives such as open banking and digital credit systems aimed at improving access to finance.

Asiama said expanding digital credit could help individuals and small businesses access funds more easily, supporting entrepreneurship and reducing poverty.

“People should be able to raise money digitally and support themselves,” he said, adding that high borrowing costs remain a constraint in Ghana.

The measures come as the central bank seeks to stabilise the cedi and strengthen macroeconomic management after periods of volatility.

Analysts say ensuring that remittance inflows pass through formal channels could significantly boost foreign exchange availability and support monetary policy.

Ghana’s diaspora is a major source of foreign currency, and authorities are increasingly focusing on leveraging those flows to support economic stability and investment.