FABAG flags black market dollar surge despite cedi gains
By: Rebecca Okine
The Chairman of the Food and Beverages Association of Ghana (FABAG), John Awuni, has raised concerns over the widening gap between the interbank and black market exchange rates for the US dollar.
Despite the Ghanaian cedi showing signs of strength on the interbank market, Mr. Awuni described the opposing trend on the black market as “a bit worrying.”
He noted that a significant portion of Ghanaian businesses resort to the black market for foreign exchange due to the inability of commercial banks to meet high dollar demands.
“From where I sit, I would say that a huge portion of the businesses deal with the black market,” he stated.
Mr. Awuni cited a recent interaction with a businesswoman who had approached a bank to purchase $5,000. According to him, the bank was unable to supply the amount and instead directed her to a black market dealer to complete the transaction.
He stressed that such developments point to a larger systemic issue in which even banks, due to liquidity constraints, may indirectly support black market activity to satisfy clients.
He also referenced past government pronouncements that left businesses confused about how to legally source foreign exchange for imports.
“They said they were not going to grant a dollar… but wherever you find your dollar, they were not going to ban it,” he said.
The FABAG chairman’s remarks come at a time when the cedi has been appreciating steadily against the US dollar on the interbank market. As of May 15, 2025, the cedi was trading at GH₵12.44 for buying and GH₵12.45 for selling — a notable improvement compared to earlier in the year. The trend signals growing macroeconomic stability and renewed confidence in the local currency within formal trading channels. However, Mr. Awuni’s comments underscore a growing disconnect between the official exchange rate and the experience of many businesses. While the cedi may appear stronger on paper, demand for dollars on the black market remains high, reflecting deeper challenges within the foreign exchange system.
