The comment made by President John Dramani Mahama that the cedi was being allowed to adjust to its true market value was a factual statement, Governor of the Bank of Ghana, Dr Johnson Asiama has said.
Answering questions during the 126th Monetary Policy Committee (MPC) in Accra, Dr Asiama stated that the floating exchange rate framework allows exchange rate flexibility, which is particularly useful in helping the economy absorb external shocks without depleting international reserves to defend the currency.
“Indeed, that is factual. Ghana operates under a managed floating exchange rate regime, not a fixed or pegged exchange rate regime. The floating exchange rate framework allows exchange rate flexibility, which is particularly useful in helping the economy absorb external shocks without depleting international reserves to defend the currency. The managed float system remains firmly in place and has not changed. Consequently, fluctuations in the cedi against major international currencies are expected and reflect the dynamics of various short-, medium-, and long-term economic variables.
“Regarding access to foreign exchange, I would like to clarify that, as of yesterday [16 September 2025], there were no unmet dollar demands from commercial banks. The head of our Financial Markets Department can attest to this. We have consistently supported the market, and commercial banks also engage in interbank trading to meet import financing needs. If there are isolated cases of difficulty, they are likely due to documentation or procedural issues, which should be addressed on a case-by-case basis. Generally, the formal banking system continues to play a central role in foreign exchange distribution, and we remain committed to ensuring its effectiveness,” he said.
President John Dramani Mahama recently said in relation to the depreciation of the Cedi that the local currency has been making an adjustment.
He made the point that the Cedi will settle at a rate and not depreciate again. According to him, what his economic managers are doing is to stabilise the currency to make for effective economic planning.
“I believe that it is about stopping the rapid depreciation of the cedi,” he said in an answer to a question posed by TV3’s Keminni Amanor at a media encounter on September 10 at the Jubilee House. ”
The cedi is making an adjustment, and it will settle at a certain rate,” he assured.
He further stated that the Bank of Ghana has been intervening in the forex market, but they have withdrawn.
“The cedi is adjusting, we will make sure that any depreciation that occurs in the value of the cedi is within a per cent per annum margin.”
The central bank has, however, taken steps to strengthen the Cedi. The Bank of Ghana reiterated the caution to institutions and individuals against charging or accepting payments in foreign currencies for goods and services in Ghana, stressing that the Ghana cedi remains the only legal tender.
In a notice issued on Wednesday, August 27, 2025, the central bank reminded the public that under the Foreign Exchange Act, 2006 (Act 723), it is illegal for any person or institution without authorisation to engage in foreign exchange transactions.
These include black market dealings, pricing, invoicing or advertising in foreign currencies, particularly the United States dollar.
“The Ghana cedi remains the only legal tender in Ghana,” the notice signed by Mrs Aimee V. Quashie, Secretary to the Bank, said.
It added that no resident of Ghana, unless duly licensed or authorised by the Bank of Ghana, should price, advertise, invoice, or receive payment in any foreign currency.
The directive covered transactions such as the payment of school fees, the sale and rental of vehicles, the sale and rental of real estate, airline tickets, domestic contracts, retail shopping, online sales and hotel accommodation.
According to the BoG, foreign currency invoices may be issued only to expatriates or non-residents, with proceeds required to be paid into a Foreign Exchange Account (FEA) with licensed banks.
The Bank further stated that exchange rates on such invoices must reflect prevailing market rates of commercial banks and be benchmarked against its published reference rate.
The Bank of Ghana said foreign exchange transfers for legitimate external payments remain permitted through the banking system, subject to regulatory limits and procedures.
It cautioned that enforcement would continue and warned that persons or institutions found to be in breach would face sanctions and prosecution in line with Act 723.
Some banks have been caught violating this directive. On Thursday, September 4, the Bank of Ghana announced that it has suspended the Foreign Exchange Trading Licence of United Bank for Africa (UBA Ghana), effective September 18, 2025, for a period of one month, in accordance with section 11(2) of the Foreign Exchange Act, 2006 (Act 723).
A statement issued by the BoG on Thursday, September 4, said that this is a result of multiple violations of the foreign exchange market regulations, including the Updated Guidelines for Inward Remittance Services by Payment Service Providers, 2023, as amended by Bank of Ghana Notice No. BG/GOV/SEC/2025/25, which has come to the attention of the Bank of Ghana.
“UBA Ghana conducted unauthorised remittance activities with the following Payment Service Providers(PSPs); Halges Financial Technologies Limited, Cellulant Limited and Flutterwave Inc., on behalf of Money Transfer Operators(MTOs) – Top Connect, Send App, Taptap Send, Remit Choice and Afriex.
“All remittance partnerships held between UBA Ghana and DEMIs/PSPs/MTOs have been suspended. DEMIs/PSPs/MTOs that wish to engage UBA Ghana in future partnerships must re-apply after the suspension period elapses.
“By this statement, the Bank of Ghana cautions foreign exchange market players to adhere strictly to the applicable forex market regulations and guidelines,” the statement said.
Source:Lovinghananews.com
