The Governor of the Bank of Ghana, Dr. Johnson Asiama, has raised red flags over the persistent dollarisation of Ghana’s economy, cautioning that the trend threatens recent gains made by the Cedi and undermines national economic stability.
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Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting in Accra on Tuesday, July 15, Dr. Asiama pointed out that many businesses continue to price goods and services in U.S. dollars, especially in sectors like real estate, private education, and luxury retail, despite operating solely within Ghana’s borders.
“We are still grappling with a deep-rooted culture of dollarisation,” he said. “Too many businesses continue to price in dollars despite transacting entirely within Ghana. This practice not only violates legal tender laws but also chips away at public confidence in the Cedi.”
Beyond pricing practices, Dr. Asiama also expressed concern about how foreign exchange inflows are being managed. He noted that while export earnings have risen, a significant chunk is either kept offshore or not reinvested into the local economy.
“There is a worrying mismatch between forex inflows and domestic reinvestment,” he explained. “Our formal savings rate remains low, and SMEs, particularly in the informal sector, are not retaining export value at levels anywhere near their potential.”
The BoG Governor called for a concerted national effort to shift market sentiment and restore confidence in the Cedi, emphasizing that macroeconomic progress cannot be sustained without strong support for the local currency.
“Rebuilding trust in the Cedi is not just a technical issue; it’s a national imperative,” he stressed.
The warning comes at a time when Ghana has recorded a 42% appreciation in the Cedi and international reserves have risen to $11.1 billion, according to recent BoG data.
Dr. Asiama’s remarks serve as a stark reminder that currency stability depends not only on policy gains but also on public and market behavior.
