No more dollar dreams, the cedi deserves better

The Bank of Ghana’s latest directive reaffirming the Cedi as the sole legal tender for pricing and payments within the country is not just a regulatory move. It is a bold economic reset. For far too long, the creeping dollarisation of the country’s economy has undermined the strength of the Cedi, distorted market pricing, and placed undue pressure on ordinary citizens.

From private schools quoting fees in US dollars to hotels advertising rates in foreign currency and landlords demanding rent in greenbacks, the practice has become alarmingly widespread. Even domestic airline tickets and online retail platforms have not been spared.

This trend has created a two-tier economy, one for the privileged few who earn or hold foreign currency and another for the average Ghanaian who earns in Cedis but is forced to convert at unfavourable rates.

The BoG’s directive, is a timely intervention. It makes clear that quoting, advertising, or receiving payments in foreign currency without proper authorisation is illegal under the Foreign Exchange Act, 2006 (Act 723). This includes black market dealings and unlicensed forex transactions. Only expatriates and non-residents are exempt, and even then, payments must be routed through formal banking channels.

The implications of this move are far-reaching. First, it sends a strong signal that the Cedi must be respected as the national currency. When institutions sidestep it in favour of the dollar, they erode public confidence and fuel inflation. By enforcing this directive, the BoG is protecting the integrity of the Cedi and restoring its rightful place in the economy.

Second, it offers relief to ordinary Ghanaians. Parents struggling to pay school fees, tenants battling dollar-denominated rent, and travellers facing unpredictable ticket prices will now be shielded from the volatility of foreign exchange markets. This levels the playing field and ensures that pricing reflects local economic realities, not external pressures.

Third, it strengthens monetary policy. A dollarised economy is harder to manage. The BoG’s ability to control inflation, interest rates, and liquidity depends on the dominance of the Cedi. By curbing illegal forex practices, the Bank can better stabilise the currency and promote sustainable growth.

Of course, enforcement will be key. The directive must not remain a paper tiger. Institutions flouting the law must face swift sanctions. Public education is also vital. Citizens must understand their rights and responsibilities under this new regime.

In the long run, this move could mark a turning point. If properly implemented, it will boost confidence in the Cedi, reduce dependency on foreign currency, and promote a more inclusive economy. Ghana must trade in its own currency, price in its own currency, and believe in its own currency.

The Cedi is not just a medium of exchange. It is a symbol of national sovereignty and it is time we treated it as such.