Bank of Ghana Governor Warns Against Rising Dollarisation Amid Cedi Gains
The Governor of the Bank of Ghana, Dr. Johnson Asiama, has sounded the alarm over the persistent dollarisation of Ghana’s economy, describing it as a critical threat to the stability of the Cedi and the broader macroeconomic recovery efforts.
Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting held in Accra on Tuesday, July 15, 2025, Dr. Asiama lamented the growing trend of pricing goods and services in U.S. dollars, particularly in sectors such as real estate, education, and luxury retail, despite transactions taking place entirely within the country.
“We are still grappling with a deep-rooted culture of dollarisation. Too many businesses continue to price in dollars… This practice not only violates legal tender laws but also undermines confidence in the Cedi,” he warned.
Dr. Asiama stressed that the increasing reliance on foreign currency undermines the Central Bank’s efforts to stabilise the local currency and build trust in Ghana’s financial system.
He also raised concerns over the weak linkage between Ghana’s rising foreign exchange inflows and domestic economic reinvestment. According to the Governor, while export receipts have improved, many businesses—especially SMEs—fail to reinvest the proceeds locally or retain value within the country.
“Even more concerning is the mismatch between forex inflows and domestic reinvestment. While export receipts have risen, a significant portion is either held offshore or not channelled back into productive activity at home,” he noted.
Dr. Asiama also pointed to Ghana’s low formal savings rate and called for urgent reforms to ensure that the country maximises the value of its exports, especially within the informal sector.
He concluded by calling on the business community, policymakers, and financial institutions to collectively rebuild confidence in the Cedi, stating, “Confidence in our currency is key to sustaining our economic recovery.”
Please download our HOTDIGITAL ONLINE APP and follow HotDigital Online on our social media platforms to stay updated on our upcoming initiatives.
#HotDigitalHealthAwareness #CommunityHealth #GhanaNursesAssociationUK #HealthMatters #HotDigitalOnline #StrongerTogether
