In Ghana’s main trading centres such as Accra, Kumasi and Takoradi, many businesses are quietly buying and selling dollars outside the formal banking system. This parallel foreign exchange market, though often informal, has become an important part of daily commercial life.
For traders, importers and ordinary consumers, it is no longer unusual to source dollars through personal networks and forex dealers rather than through banks.
On paper, Ghana’s currency appears relatively stable. The Bank of Ghana’s interbank exchange rate currently puts the cedi at about GH¢10.94 per dollar. These are the figures used by banks and published in official data. But on the streets and in the markets, the reality is different. At many forex bureaus, the dollar sells for far more than it does at banks. In some cases, customers are paying above GH¢12 for a single dollar, depending on availability and demand.
This gap between the official rate and what people actually pay matters deeply. It affects the price of imported goods, spare parts, medicines, fuel and even school fees. Many businesses say they simply cannot access enough foreign exchange from banks to operate smoothly. As a result, they turn to informal sources that may be more expensive but are faster and easier to deal with.
The Importers and Exporters Association of Ghana has repeatedly raised concerns about this situation. In public statements, the Association has explained that many of its members struggle to obtain dollars through formal channels even when the cedi shows signs of strengthening. According to the group, the limited availability of foreign exchange at banks forces businesses to rely on the parallel market, increasing their operating costs and passing those costs on to consumers.
At major trading hubs such as Abossey Okai in Accra and Adum in Kumasi, spare parts dealers openly acknowledge this challenge. Many say banks often delay or restrict dollar access, while informal dealers can supply cash immediately. These dealers, commonly referred to as Abokis, operate in a legal grey area. While unlicensed foreign exchange trading is illegal under Ghana’s Foreign Exchange Act, the practice continues because demand remains high and enforcement is difficult.
Economists say this situation reflects deeper issues within the economy. Ghana depends heavily on imports, but the foreign currency supply is limited. Banks themselves struggle to meet demand, and strict documentation requirements discourage small traders. As a result, an informal system has grown alongside the official one. This system may be risky, but for many businesses, it feels necessary.
The impact goes beyond traders. Landlords increasingly think in dollar terms when setting rent, especially in urban areas. Parents paying fees at private and international schools often find charges adjusted based on parallel market exchange rates. Even prices at supermarkets and pharmacies quietly rise when importers pay more for dollars.
The Institute of Statistical, Social and Economic Research has warned that widespread informal forex trading also affects government revenue. ISSER Director Professor Peter Quartey has explained that transactions outside the banking system make it easier for traders to hide the true value of imports, leading to lower tax payments and reduced state revenue. This weakens the government’s ability to invest in public services and infrastructure.
Authorities have attempted to respond. In recent years, security agencies have carried out operations targeting unlicensed forex traders. The Bank of Ghana has also announced plans to inject up to one billion dollars into the market through foreign exchange auctions, to improve dollar supply and stabilise the cedi. These interventions are meant to reduce pressure on the currency and narrow the gap between official and street rates.
Despite these efforts, confidence remains fragile. Many businesses still prefer informal channels because they are predictable and responsive. Until banks can reliably meet foreign exchange demand and trust in the cedi improves, the parallel dollar market is likely to remain a feature of Ghana’s economy.
For now, Ghana is living with two exchange rates. One exists in official data and policy documents. The other exists in markets, shops and daily transactions. It is this second rate that quietly shapes prices, influences spending and reveals how Ghanaians truly feel about their currency.
