Ghana’s recent currency gains are not only drawing global attention but also prompting bold regulatory action. Riding high on the cedi’s remarkable rebound, Bank of Ghana board member Isaac Adongo has disclosed plans to clamp down on over-the-counter US dollar withdrawals in a move aimed at sustaining the local currency’s momentum.
The policy, which builds on existing restrictions, will introduce even tighter controls—essentially halting routine dollar cash withdrawals from bank counters except in rare, approved cases.
“If you put your dollars in the bank account, it is okay. We are happy with that; you can only get dollars if indeed you are going to use them for a dollar-denominated transaction,” Adongo explained in an interview on Joy News.
The Bolgatanga Central MP emphasised the Central Bank’s authority in determining how foreign exchange is used within the economy.
“The Central Bank’s role includes regulating the use of our legal tender. When you request dollars, we’ll provide cedis instead.”
At the heart of the move is a strategy to neutralise speculative dollar demand and reduce the pressure on the local currency by limiting access to physical dollars.
“You’ll see the results reflected in the dollar rate,” Adongo stated. “We’re eliminating dollar speculation through bank accounts. Deposited dollars will only be released for legitimate foreign transactions – dollars are meant for spending abroad, not domestically.”
Currency Climb: Cedi’s Best Year in Sight?
The cedi, which hovered around GH₵15.50 to the US dollar earlier in the year, staged an impressive rally to GH₵13.1 by early May 2025—its strongest level in over a year.
The appreciation has earned it the status of the world’s best-performing currency in recent months, bolstering confidence in Ghana’s monetary authorities.
However, not everyone is crediting the turnaround solely to regulatory reforms or the government’s much-touted gold-for-oil and gold-reserve initiatives.
Expert View: “It’s Not Just Gold”
Banking Consultant and Economist Dr. Richmond Atuahene believes the cedi’s appreciation is the result of several converging factors—not just gold-backed strategies.
“The currency is not strengthened because it is only gold. Let me tell you on record, remittances have been revamped in this country. People talk, and they forget,” he said on The Point of View with Bernard Avle on Channel One TV.
Dr. Atuahene pointed to a significant uptick in foreign remittances, which he said has boosted cedi liquidity in the banking sector and provided banks with better access to domestic currency reserves.
He also highlighted strong performance in Ghana’s cocoa exports as a vital contributor to the cedi’s resurgence.
“Don’t forget cocoa. It will shock you to know that a year ago [2024], cocoa was sold at [$]4,825 per metric tonne. Today, go to the market—we’re talking about [$]8,000,” he noted.
In addition to exports and remittances, Dr. Atuahene underscored the importance of government fiscal discipline and tighter monetary policy in stabilising the economy.
“All these things are the factors, in addition to the fiscal discipline, tightened monetary policy, and what have you. So, you can’t lay your hands on just the gold. Let’s get it that remittances are giving lots of banks cedis,” he added.
As the cedi continues its rally, the Bank of Ghana’s clampdown on dollar access signals a firm intention to defend its value—backed by more than just gold, and driven by an increasingly coordinated economic strategy.
Source: Citinewsroom