No govt contracts will be awarded in foreign currency

The Minister for Finance, Dr. Cassiel Ato Forson, has announced that government contracts will no longer be awarded in foreign currencies, regardless of the funding source. The move, he said, is aimed at strengthening the Ghanaian cedi and reversing the growing trend of dollarisation in the economy.

Presenting the 2025 Mid-Year Budget Review in Parliament on Thursday, July 24, Dr. Forson stated that President John Dramani Mahama had issued a directive, effective immediately, prohibiting the pricing and awarding of public contracts in any currency other than the cedi.

“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,” Dr. Forson told Parliament.

He further reminded the public that the Foreign Exchange Act, 2006 (Act 723) strictly prohibits companies, institutions, and individuals from pricing, advertising, or making payments in foreign currencies without the prior written approval of the Bank of Ghana.

The finance minister’s comments come in response to growing concerns raised by the Governor of the Bank of Ghana, Dr. Johnson Asiama, over the increasing dollarisation of the Ghanaian economy.

At a Graphic Business/Stanbic Bank Breakfast Meeting in Accra on Tuesday, July 15, Dr. Asiama warned that the persistent practice of pricing goods and services in U.S. dollars—especially in the real estate, education, and luxury retail sectors—undermines public confidence in the local currency.

“We are still grappling with a deep-rooted culture of dollarisation. Too many businesses continue to price in dollars, despite transacting entirely within Ghana,” Dr. Asiama cautioned. “This practice not only violates legal tender laws but also weakens the foundation of macroeconomic stability.”