The Governor of the Bank of Ghana, Dr. Johnson Asiama, has raised serious concern about the increasing dollarisation of Ghana’s economy, cautioning that the trend continues to weaken public confidence in the local currency despite the recent strengthening of the Cedi.
Addressing participants at the Graphic Business/Stanbic Bank Breakfast Meeting in Accra on Tuesday, July 15, Dr. Asiama indicated that the growing tendency among businesses to price goods and services in U.S. dollars poses a significant threat to the country’s efforts to stabilise the currency and maintain broader macroeconomic balance.
He explained that the country was still contending with a deeply entrenched culture of dollarisation, adding that numerous businesses, particularly in the real estate, education, and luxury retail sectors persist in quoting prices in dollars, even though their transactions occur entirely within Ghana. According to him, this practice not only contravenes legal tender regulations but also damages public trust in the Cedi.
Dr. Asiama further highlighted the worrying disconnect between foreign exchange inflows and domestic economic reinvestment. He observed that although export receipts had increased, a considerable portion of the earnings was either being held abroad or not reinvested in productive ventures within the country.
He also pointed out that Ghana’s formal savings rate remained low and noted that the level of export value retention, especially among small and medium-sized enterprises (SMEs) and in the informal sector was far below what the country could potentially achieve.
He emphasised the need for a collective push to shift market perceptions and restore faith in the Cedi, underscoring that rebuilding confidence in the local currency is essential for sustaining the current macroeconomic progress.
