The Bank of Ghana (BoG) has cautioned the public against using the US dollar to transact business in Ghana.
The development follows reports that some businesses and entities are pricing their services in dollars rather than the Ghana cedi, which is contrary to the law.
In a statement released by the regulator on Wednesday, August 27, the BoG reminded the public that the Foreign Exchange Act, 2006 (Act 723) provides that it is illegal to price local services in a foreign currency without the express approval of the Bank.
The statement noted that such activities include black-market dealings and the pricing or invoicing of goods and services—particularly advertising—in foreign currencies, especially the United States dollar.
“The Ghana cedi remains the sole legal tender for the payment of any cash amounts for services and businesses rendered in the local economy,” the statement emphasized. It was signed by Mrs. Alimee Quarshie, Secretary to the Bank.
The BoG added that no citizen or resident of Ghana may conduct transactions in foreign currency without prior approval from the Bank of Ghana.
The directive covers a wide array of services, including payment of school fees; sale and rental of automobiles; airline ticket sales; real estate transactions; domestic contracts and retail shopping; and hotel accommodation.
According to the release, foreign-currency-denominated invoices may be issued only to expatriates or non-residents and must be processed through foreign-exchange accounts held with licensed banks.
The Bank recommended that exchange rates applied to such transactions align with the prevailing rates approved by the Bank of Ghana and those used by commercial banks in the country.
Foreign exchange payments due outside the country will be permitted in accordance with established BoG regulatory protocols.
It warned that strict enforcement measures will be implemented and that offenders may be arrested and prosecuted in accordance with existing laws.
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Story by Sika Togoh|univers.ug.edu.gh
