Isaac Adongo, a board member of the Bank of Ghana (BoG), has revealed intentions to tighten regulations on over-the-counter withdrawals of US dollars from financial institutions in an effort to slow the depreciation of the cedi.
Although there are now some dollar withdrawals that can be justified under current restrictions, the central bank will shortly impose an almost complete ban with few exceptions.
In an interview with Joy News, 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.”
“The Central Bank’s role includes regulating the use of our legal tender. When you request dollars, we’ll provide cedis instead,” a report by myjoyonline.com quoted him as saying.
In light of the cedi’s recent designation as the best-performing currency in the world, Adongo expressed optimism that the measure will have a favorable effect on exchange rates.
“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.”
The cedi was steady between February and April 2025 at about GH¢15.50 to the US dollar before gaining a lot of strength to reach GH¢12.45 in early May, which was its strongest position in a year.
Databank Research analysts said that Goldbod’s recent partnership with nine mining companies is partially responsible for this performance.
Payments are made in cedis instead of dollars, and 20% of their monthly expected gold production (200 kg) is secured for domestic purchase before to export.
If you operate a dollar account, take note: the Bank of Ghana now bans over-the-counter dollar withdrawals.
Board member and Finance Committee Chair, Isaac Adongo, warns that banks that defy the directive will face sanctions. #JoyNews pic.twitter.com/CjJWBdEV6P
— JoyNews (@JoyNewsOnTV) May 14, 2025
Source: www.ghanaweb.com
