BoG reacts to inconsistencies in article on 'Ghana becoming a dual currency state'

The Bank of Ghana has responded to an opinion article titled "Is Ghana Becoming a Dual Currency State? The Rise of Yellow Currency!" and authored by one Bismark Brown.

The Communications Department of the apex bank said it noted the contents of the article and finds it important to correct some inconsistencies and misinformation.

The BoG clarified that in 2007, when licensing mobile money, they decided on a bank-based model, unlike other jurisdictions that rolled out a telco-based model.

This distinction it explained is crucial, as the author of the article confused the two models.

“In Ghana, all such services have banks and fintechs (licensed by BoG) behind them and actual transactions are in cedis. Such back office services are not visible to the general public, and are coordinated by the Ghana Interbank Payments and Settlement Systems (GhIPSS)—a wholly owned subsidiary of BoG. And, this is what distinguishes Ghana from other telco-based jurisdictions,” the BoG said in a rejoinder.

The BoG emphasized that Ghana is also among other jurisdictions which are now working towards establishing similar interoperability.

The Bank of Ghana said it remains fully engaged and committed to monitoring the financial ecosystem to promote stability and flexibility for financial inclusion.

MA