Bank of Ghana (BoG) board member Isaac Adongo has announced plans to intensify restrictions on over-the-counter US dollar withdrawals from financial institutions as part of efforts to curb cedi depreciation.
While existing regulations permit limited dollar withdrawals with justification, the central bank will soon enforce a near-blanket prohibition with minimal exceptions.
In an upcoming interview on PM Express with Evans Mensah, the Bolgatanga Central MP explained, “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,” he revealed.
He stressed, “The Central Bank’s role includes regulating the use of our legal tender. When you request dollars, we’ll provide cedis instead.”
Adongo expressed confidence that the measure would positively impact exchange rates, coinciding with the cedi’s recent recognition as the world’s best-performing currency.
“You’ll see the results reflected in the dollar rate,” he emphasised. “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.”
Cedi’s Remarkable Recovery
The cedi maintained stability at approximately GH₵15.50 to the US dollar between February and April 2025 before strengthening significantly to GH₵13.1 in early May – its most robust position in twelve months.
Analysts at Databank Research attribute this performance partly to Goldbod’s recent agreement with nine mining companies. The deal secures 20% of their monthly estimated gold production (200kg) for domestic purchase before export, with payments made in cedis rather than dollars.
However, the primary driver appears to be a dramatic increase in export revenues. Ghana recorded over $2.3 billion in gold exports during January-February 2025 – the highest two-month total in more than ten years.
In the first two months of 2025, Ghana exported over $2.3 billion in gold, the highest in more than a decade.
The cedi’s strength is not limited to the US dollar. The pound has fallen to GHS17.45 from GHS20.60 in late April, while the euro has slipped to GHS14.78 from GHS17.72.
The Canadian dollar is also down to GHS9.40 from GHS11.00 over the same period.
On the back of this, authorities are implementing measures to ensure that the gains are sustained to boost the local economy.
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