President John Dramani Mahama has imposed an immediate ban on the awarding and pricing of all government contracts in foreign currencies, regardless of the source of funding. The announcement was made by the Minister for Finance, Dr. Cassiel Ato Forson, during the presentation of the 2025 Mid-Year Budget Review in Parliament on Thursday, July 24, 2025.
Dr. Forson stated, “To curb this unfortunate development, His Excellency John Dramani Mahama has directed that from today, July 24, 2025, no contract awarded by the government, irrespective of the source of funding, should be denominated in foreign currency.” The move is aimed at reversing the rising trend of dollarisation in the Ghanaian economy and strengthening the cedi.
The Finance Minister also reminded the public of the strict enforcement of the Foreign Exchange Act, 2006 (Act 723), which prohibits companies, institutions, and individuals from pricing, advertising, or making payments in foreign currencies without prior written approval from the Bank of Ghana.
This directive comes amid mounting concerns raised by the Governor of the Bank of Ghana, Dr. Johnson Asiama, over the increasing prevalence of dollarisation, particularly in sectors such as real estate, education, and luxury retail. Dr. Asiama warned at a recent Graphic Business/Stanbic Bank Breakfast Meeting that the persistent practice of pricing goods and services in U.S. dollars—despite transactions occurring entirely within Ghana undermines public confidence in the local currency and poses risks to macroeconomic stability.
Source:NKONKONSA.com
