"Dollar-priced Gov’t Contracts, Products and Services by Businesses Banned With Immediate Effect

Dollar-priced Gov’t Contracts, Products and Services by Businesses Banned With Immediate Effect – Finance Minister

President John Dramani Mahama has issued a directive prohibiting the awarding of government contracts and the pricing of goods and services in foreign currencies—particularly the US dollar—as part of efforts to combat the dollarisation of the economy and stabilise the cedi.

Disclosing the directive during the presentation of the 2025 Mid-Year Budget Review on Thursday, July 24, Finance Minister Dr Cassiel Ato Forson said the measure takes immediate effect and applies to all state entities and businesses operating within Ghana.

“President Mahama has directed the cessation of the award of government contracts in foreign currency, notably the US dollar, even if the source of funding is in foreign currency,” Dr Forson told Parliament. “All businesses are also prohibited from advertising, pricing, or selling their goods and services in foreign currencies unless with approval from the Bank of Ghana.”

Anti-Dollarisation Policy Aimed at Exchange Rate Stability

The directive forms part of broader efforts to reverse the structural dollarisation of the economy, which policymakers say has contributed to persistent pressure on the local currency. The cedi, despite recent appreciation, remains vulnerable to external shocks and local demand for hard currency.

The Finance Minister said the new policy would reinforce exchange rate stability, enhance monetary policy effectiveness, and strengthen confidence in the cedi.

The announcement follows a string of macroeconomic stabilisation measures under Ghana’s IMF-supported reform programme, including tighter fiscal controls, improved FX management, and central bank interventions to boost confidence in the currency.