The Bank of Ghana (BoG) is urging businesses across the country to prioritize the use of the local currency in all local transactions. This comes at a crucial time when the local currency has begun to show signs of recovery after months of volatility.
Speaking at the 9th Ghana CEO Summit in Accra, Acting BoG Governor Dr. Johnson Asiama emphasized that strengthening the local currency must be a national effort, starting with how businesses handle their daily transactions.
“The cedi remains the only legal tender in Ghana. As businesses, we must ensure that transactions are conducted in our local currency,” Dr. Asiama said.
Why Business Transactions Should Support the Cedi
The BoG noted that when businesses transact in foreign currencies like the dollar, it adds unnecessary pressure on Ghana’s forex reserves. The Central Bank notes that a nationwide commitment to the local currency will help build confidence and slow the rate of depreciation.
“When more transactions are done in the cedi, it boosts demand for the local currency and helps contain exchange rate volatility,” Dr. Asiama said.
BoG’s Capital Market Strategy to Back the Cedi
Dr. Asiama announced that the Central Bank is collaborating with the Ministry of Finance, SIGA, and the Ghana Stock Exchange to shift away from short-term debt solutions.
“We are working to revive Ghana’s domestic capital market. This will allow for long-term funding strategies that reduce our reliance on short-term borrowing,” he noted.
This strategy is expected to help bolster the currency and drive economic resilience in the medium to long term.
Crypto Regulation Needed to Safeguard Local Currency
Another major announcement from Dr. Asiama was the BoG’s intent to introduce cryptocurrency regulations. He revealed that nearly 17% of Ghanaians currently hold digital assets, a trend particularly strong among young people, tech startups, and women-led businesses.
“We can no longer allow a regulatory vacuum. Crypto is here, and we must protect users and the cedi, from potential risks,” he said.
