The Bank of Ghana (BoG) has warned individuals and businesses to immediately cease unauthorized foreign exchange dealings, including black market transactions and the pricing of goods and services in U.S. dollars, saying such practices are strictly prohibited under the Foreign Exchange Act, 2006 (Act 723).
In a directive issued on Thursday, the central bank underscored that the Ghana cedi remains the only legal tender in the country. It cautioned that no resident or business, unless licensed or authorized, may advertise, quote, invoice, receive, or make payments in foreign currency for goods and services ranging from school fees and real estate to airline tickets, hotel accommodation, and retail shopping.
“Institutions (both public and private) and individuals engaging in such practices are hereby directed to immediately cease and desist,” the BoG stated, adding that violations will attract sanctions and legal action.
The regulator said foreign currency invoices may only be issued to expatriates or non-residents, with proceeds paid into foreign exchange accounts at licensed banks. Exchange rates applied on invoices, it added, must reflect prevailing commercial bank rates and be benchmarked against the central bank’s published reference rate, not arbitrarily set.
The BoG noted that foreign exchange transfers for legitimate external payments remain available through the banking system, subject to regulatory thresholds and commercial banks’ internal processes.
The announcement comes as Ghana continues efforts to stabilize the cedi, which has faced recurrent pressure from dollar demand, informal forex trading, and external debt servicing. By reinforcing compliance, the BoG aims to curb black market activity, enhance transparency, and strengthen the formal financial system.
The move, however, could help reduce speculative pressure on the cedi, which has faced persistent depreciation from high dollar demand and informal forex trading. By restricting unregulated dollar pricing, the BoG aims to channel foreign currency flows into the formal banking system, boosting transparency and strengthening oversight of forex markets.
For businesses, the directive could raise short-term adjustment costs. Real estate firms, schools, and hotels that have long relied on dollar-based pricing will need to recalibrate contracts, accounting systems, and customer communications to align with cedi transactions. Retailers and service providers accustomed to dollar invoices may also face tighter scrutiny.
The enforcement could also lead to improved monetary policy effectiveness, stabilize exchange rates, and support inflation control by reducing distortions caused by parallel market pricing. At the same time, the measure represents a broader push to restore confidence in the cedi, deepen local currency use, and curb leakages that weaken foreign exchange reserves.
