GAB denies reports of banks discontinuing foreign currency savings accounts

The Ghana Association of Banks (GAB) has refuted rumors that commercial banks are planning to close personal foreign currency savings accounts by the end of July this year.

This comes after reports that some commercial banks in the country were requesting customers with foreign currency savings accounts to transfer their funds to current accounts.

The Chief Executive of GAB, John Awuah, clarified in an interview with Citi Business News that the decision was made by only one bank, not all commercial banks.

“No bank has taken any decision to discontinue deposits in foreign currencies. Rather, one bank has reviewed its products offerings and decided that they are not going to henceforth be operating using accounts in foreign currencies,” he said.

Responding to concerns that the move might be a strategy by banks to impose additional fees or reduce forex gains for customers, Awuah reassured that the decision by that particular bank was aimed at stabilizing the local currency and preventing speculation.

“(The bank) observed a trend where customers hoard foreign currencies in their foreign currency savings accounts. A practice which is feeding into speculation and leading to the depreciation of the Cedi and we do not want to be part of this,” he explained.

He also stressed that businesses involved in foreign transactions could still use foreign currency current accounts or other specialized accounts like the Foreign Exchange Account.

ID/MA