Ghana’s Minister of Finance, Cassiel Ato Forson, has announced an immediate ban on the use of foreign currencies in all government contracts.
The policy aims to stabilize the Ghanaian cedi and promote fiscal discipline amid growing concerns over currency devaluation.
The Minister, while delivering the 2025 Mid-Year Budget Review on Thursday, declared that no government contract; regardless of how it is funded, will be priced or awarded in any foreign currency.
He noted that allowing contracts to be negotiated in foreign denominations poses serious risks to the country’s economy, undermines the cedi, fuels inflation, and weakens confidence in our sovereignty.
The directive, issued under the instruction of President John Dramani Mahama, is intended to reduce Ghana’s increasing dependence on foreign currencies in official transactions.
Forson referred to existing legislation, specifically, the Foreign Exchange Act of 2006 (Act 723) – which already prohibits individuals, institutions, and businesses from pricing, advertising, or making payments in foreign currency without prior approval from the Bank of Ghana.
The new directive has sparked debate among business leaders, particularly in sectors like importation where foreign currency is frequently used.
As Ghana continues to face economic headwinds, the government’s renewed focus on fiscal responsibility and currency stabilization is expected to shape the country’s financial outlook moving forward.
