BoG to Soon Tighten Restrictions On Over-The-Counter Dollar Withdrawals to Sustain Cedi’s Gains – Isaac Adongo

BoG to Soon Tighten Restrictions On Over-The-Counter Dollar Withdrawals to Sustain Cedi’s Gains – Isaac Adongo

A member of the Bank of Ghana’s Board of Directors, Isaac Adongo, has revealed that the Central Bank will soon intensify restrictions on over-the-counter withdrawals of US dollars from financial institutions, as part of a broader strategy to sustain the cedi’s recent strong performance against major trading currencies.

Currently, commercial banks are allowed to disburse limited amounts of dollars for specific, justified transactions. However, the impending directive will drastically reduce such exemptions, allowing access to foreign currency only for legitimate dollar-denominated obligations.

Speaking in a yet-to-be-aired interview on PM Express, the Bolgatanga Central MP said the move is intended to curb dollar speculation and consolidate the cedi’s rebound.

“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 and so when you request dollars, we’ll provide cedis instead,” Mr Adongo stated.

According to Mr Adongo, the policy aims to eliminate speculative demand for the dollar through bank accounts, ensuring foreign exchange is only disbursed for legitimate offshore transactions.

“When the policy directive is implemented, you’ll see the results reflected in the dollar rate. Dollars are meant for spending abroad, not domestically,” he emphasised.

The cedi has been on a remarkable recovery trajectory, strengthening from GHS 15.50 to the US dollar between February and April 2025 to GHS 13.10 in early May — its highest level in a year. The local currency’s appreciation has also been broad-based, recording gains against the pound sterling, euro, and Canadian dollar.

The pound has declined from GHS 20.60 in late April to GHS 17.45, while the euro has slipped to GHS 14.78 from GHS 17.72. The Canadian dollar has dropped from GHS 11.00 to GHS 9.40 within the same period.

Analysts have linked the cedi’s rally to improved export earnings, notably a deal between Goldbod and nine mining firms to supply 20% of their monthly gold production estimated at 200kg for domestic sale in cedis.

The country recorded gold exports worth over $2.3 billion in January and February 2025 alone, the highest two-month total in over a decade.

The government, together with the BoG, is keen on building on the gains to enhance macroeconomic stability and reduce demand-side pressures on the local currency.