BoG Governor pushes for end to dollar use in domestic trade
By Praisebell Rosemond Larbi
The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has declared his determination to make the Ghana cedi the sole medium of exchange for all domestic transactions, describing the continued use of the United States dollar within Ghana’s economy as a major structural weakness undermining monetary policy effectiveness.
Speaking in an exclusive interview with the International Monetary Fund (IMF) on the sidelines of the ongoing IMF/World Bank Spring Meetings in Washington D.C., Dr Asiama said ending dollarisation is now a top priority under his leadership.
“My mandate is clear: to achieve price and financial stability. It has been eight months now, and I believe we are on course. But a couple of things bother me. First of all, the issue of dollarisation. The phenomenon has been there, and we are tackling it,” he stated.
The Governor observed that many domestic transactions, including rent, school fees, and some trade deals, continue to be denominated in United States dollars despite existing laws requiring the use of the cedi. This, he said, weakens the central bank’s ability to effectively manage liquidity, exchange rates, and inflation.
As part of efforts to restore full confidence in the cedi, Dr Asiama announced that the BoG will use the “Cedi at 60” celebration on October 28 to launch a renewed national campaign promoting exclusive use of the local currency.
He emphasised that reducing Ghana’s reliance on foreign currency would be one of his key legacies as Governor.
“It is at the core of most of our problems, and it is one of the things I would want to be remembered for, that I came, I solved that problem, I made the local currency the currency of choice. The next thing is to have a central bank that is agile, ready, and able to contend with the new challenges that most central banks face,” Dr Asiama noted.
He pointed to the rise of fintech innovations and cryptocurrencies as new and complex risks requiring proactive regulation.
The Governor disclosed that the Bank is reviewing existing legislation and strengthening supervision to ensure that innovation in digital finance does not compromise financial system integrity.
Dr Asiama concluded by reiterating his vision to make the central bank adaptive and forward-looking.
“We must have the manpower, the agility, and the balance sheet to contend with any risks that emerge in the future. That is what my vision is,” he said.
Dr Asiama also affirmed that achieving full de-dollarisation and strengthening the cedi’s dominance would be a cornerstone of his legacy and a decisive step towards long-term price and financial stability.
