Ghana’s dollar black market, a long-standing intermediary for businesses and individuals struggling to access foreign currency, is bracing for potential disruption. The Bank of Ghana’s recent clampdown on unauthorized forex transactions signals tough times ahead for traders in the informal market and as well, those dealing in imports, school fees, real estate, and other sectors that rely heavily on dollars. In theory, this crackdown is positive for the sustaining of the cedi and the stability of official exchange rates, as it channels more foreign currency into regulated systems and discourages speculative trading.
Despite persistent shortages of foreign currency in commercial banks, businesses and individuals have often struggled to access dollars through formal channels. This underlying scarcity has long fueled reliance on the black market, keeping informal trading alive and pushing rates above official levels.
Recently, black market rates have hovered around Ghs11.60 – 12.10 per dollar, compared with the Bank of Ghana’s official average of around Ghs 10.75-10.95, reflecting high demand and constrained supply in the formal system. Traders in the black-market source dollars through informal networks, remittances, and parallel flows, often selling at a premium to cover risk and scarcity. These dynamics make the black market a critical, though illegal, channel for businesses and individuals when banks cannot meet their forex needs.
One of the most striking measures introduced by the Bank of Ghana is the requirement for declarations and official forms for travelers and importers carrying significant amounts of foreign currency. These measures are set to take effect from September 1, 2025, meaning travelers and importers must comply with the FX-5 declaration forms and supporting documentation from that date. Inbound travelers carrying over US$10,000 must declare the funds using the official FX-5 form and provide proof of declaration from their port of origin, including endorsed bank withdrawal slips or purchase receipts from their home country.
Outbound travelers carrying more than US$50,000 must not only declare the amount but also attach endorsed bank slips, forex bureau receipts, and supporting documents such as contracts, commercial invoices, or any proof showing the source and legitimacy of the funds. Similarly, importers must provide endorsed bank slips, forex bureau receipts, valid Import Declaration Forms, commercial invoices, and contracts if applicable to justify their foreign currency transactions. Failure to comply exposes individuals and businesses to seizure of funds, fines, or criminal prosecution, reinforcing the government’s commitment to formalize all forex flows.
The Bank of Ghana’s notices, which target unauthorized forex dealings and enforce anti-money laundering measures, aim to ensure that foreign currency moves only through licensed banks and authorized channels, thereby strengthening the cedi, stabilizing exchange rates, and curbing illicit flows that threaten economic stability. If enforcement is rigorous and banks can gradually meet demand, the black market could shrink, helping stabilize the cedi and narrow the gap between official and parallel market rates.
Yet, as long as dollar scarcity persists in commercial banks and bureaucratic delays continue, informal trading may remain a critical outlet for businesses and individuals.
