Hot SourceThe Bank of Ghana (BoG) has fired a strong warning to institutions and individuals pricing goods and services in foreign currencies, describing the practice as illegal and detrimental to the stability of the Ghana cedi.
In a notice issued on 27 August 2025, the central bank reminded the public that the cedi remains the only legal tender in Ghana, and that foreign exchange transactions outside the banking system constitute a breach of the Foreign Exchange Act, 2006 (Act 723).
The BoG cautioned schools, landlords, hoteliers, car dealers, estate developers, airlines and online vendors to immediately cease quoting in United States dollars (USD) or any other foreign currency. According to the notice, foreign invoices may only be issued to expatriates and non-residents, with proceeds deposited in licensed bank accounts.
“Foreign currency invoices may be issued only to expatriates (foreign nationals) or non-residents and proceeds from such transactions shall be paid into a Foreign Exchange Account (FEA) with any licensed bank. Exchange rates quoted and applied on invoices must reflect prevailing market rates of commercial banks and be benchmarked against the Bank of Ghana’s published reference rate and not arbitrarily determined,” the statement read.
The directive comes at a time when the cedi is battling renewed pressure against the dollar, trading at record lows on the parallel market. Many sectors of the economy, particularly education, real estate and hospitality have been accused of fuelling “dollarisation” by insisting on foreign currency payments, a practice analysts say undermines public confidence in the local currency.
The directive comes at a time when the cedi continues to face pressure from speculative activities and widespread dollarisation, especially in the real estate and education sectors. It warned that such practices not only erode confidence in the local currency but also fuel black market activity.
The central bank stressed that enforcement will be uncompromising, with violators facing sanctions and legal action.
“The Bank of Ghana will continue to enforce compliance, and violators will be subject to sanctions and appropriate legal action,” the notice read.
The central bank is signalling its determination to curb indiscipline in Ghana’s foreign exchange market as part of broader efforts to stabilise the cedi.
The post BoG bans dollar payments, orders strict use of cedi appeared first on The Herald ghana.
