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Introduction
In April 2025, the Ghana cedi appreciated significantly against the US dollar. Many have praised the ruling party for its efforts to keep the cedi stable. The Ghana Union of Traders Association (GUTA) has called on its members to reduce prices of items and commodities to reflect the current stability of the cedi.
This has generated several discussions on traditional and social media. Isaac Adongo, a member of parliament for Bolgatanga Central and now one of the board members of the Central Bank of Ghana, has commented on the matter. His comments have given the issue a whole new dimension and uncertainty.
DUBAWA seeks to clarify Adongo’s comments by looking at the reality, what the current law says, what it means to citizens, and other issues concerning his comments.
Background to Adongo’s interview
Member of parliament for Bolgatanga Central and now board member of the Bank of Ghana (BoG), in an interview on JoyNews PM Express on May 14, 2025, discussed several measures the central bank is implementing to curb the use of the US dollar for domestic transactions. He discussed the government’s efforts to make difficult decisions as early as possible. This, he believes, has accounted for the appreciation of the cedi. His statement has generated public controversy about citizens’ right to withdraw money in USD.
“If you put your dollars in the bank account, it is okay; we are happy with that. But you can only get dollars if indeed you’re going to use it for a dollar-denominated transaction,” the chair of the finance committee in parliament said during the interview.
He further stated that the central bank has the prerogative to regulate the use of the cedi, and as such, dollars will not be given for cedi-denominated transactions.
He emphasised at the interview that the BoG was not giving dollars over the counter.
“I am saying that you can’t withdraw a dollar over the counter as we speak today. You will be given the cedi equivalent. Well, it is happening in Ghana today, so maybe pay attention,” he told the presenter.
He stated that this measure was taken because it is illegal to transact business in dollars in West African countries.
What the law demands
The Foreign Exchange Act, 2006 (Act 723) mandates that the Bank of Ghana license, regulate, and supervise persons or businesses conducting foreign exchange transactions. Section 3 of Act 723 requires that the BoG prescribe persons, corporate bodies, and banks competent in dealing with foreign exchange.
Also, Section 3 (4) of the Act states the central bank renews licenses of these prescribed entities dealing in foreign exchange, subject to conditions determined by the Bank from “time to time.”
This makes the central bank the only body in charge of determining the conditions of foreign exchange business.
Reality check, what the BoG says
In response to the public outcry, the Bank of Ghana has assured citizens that no such measures are in place. The presser made three key points:
- Over-the-counter withdrawals in cash from “Foreign Exchange Accounts (FEA)” and “Foreign Currency Accounts (FCA)” are still permitted.
- Withdrawal from FEA and FCA is capped at $10,000; the person must show intent to withdraw for travelling purposes and provide a valid passport, visa, and flight ticket to prove the money will be spent outside Ghana. This applies to one person per trip.
- Cheque books and cheques can be issued on FEA and FCA accounts.
The central bank stated emphatically that it has not taken any action to review these measures.
Reaction from Ghana Bankers Association
The Ghana Bankers Association, in response, has stated that they have not received any such directives from the Bank of Ghana. Mr John Awuah, the chief executive officer, said that banks are still processing foreign currency withdrawals provided the individual meets the requirements.
“I can say on authority that as a community of banks, we do not have any directive that bars over-the-counter withdrawal of USD or any foreign currency,” he said in an interview on JoyNews.
He added that the association does not take orders from board members or directors but rather from the central bank.
“We do not take instructions from directors of the board. We take instructions from the bank, the bank here being the Bank of Ghana, under the pen of the Governor,” he added.
He admonished the general public to come for withdrawals in foreign currency with legitimate reasons.
Conclusion
Although several measures have been taken to ensure the appreciation of the cedi against the dollar, there is no blanket prohibition on withdrawing foreign currency over the counter.
