The Minister for Finance, Dr Cassiel Ato Forson, has announced that all government contracts will henceforth be awarded exclusively in Ghana cedis, effective immediately. This means contracts will no longer be denominated in dollars or any other foreign currency.
Dr Forson explained that the practice of awarding contracts and pricing goods and services in foreign currencies presents a significant risk to fiscal management, with adverse implications for the stability of the Ghana cedi.
Presenting the mid-year budget statement to Parliament on Thursday, 24 July, the Finance Minister expressed concern over the increasing use of foreign currencies in business transactions across the country.
ALSO READ: Minority stages walkout ahead of mid-year budget review presentation
Unfortunately, foreign currencies are becoming the means of transacting business in Ghana. This trend, if not checked, will erode confidence in our currency, fuel inflation and diminish the value of our sovereign symbol.
Dr Forson announced that President John Dramani Mahama has issued a directive for the immediate cessation of all government contracts in foreign currency. He added:
To curb this unfortunate development, President John Dramani Mahama has directed that, beginning today, 24 July 2025, no contract awarded by government, regardless of the funding source, should be denominated in foreign currency.
He also reminded the public of their obligation to comply with the Foreign Exchange Act, 2006 (Act 723), which prohibits pricing, advertising, receipting or making payments in foreign currency within Ghana without prior approval from the Bank of Ghana.
ALSO READ: Roads minister urges cement manufacturers to slash prices from GH¢120
The Minister emphasised:
Companies, institutions and individuals are prohibited from pricing, advertising, receipting or making payment for goods and services in foreign currencies in Ghana without prior written approval from the Bank of Ghana.
ALSO READ: Supreme Court quashes lower court orders, affirms King Teiko Tsuru II as Ga Mantse
In addition, Dr Forson noted that wage pressures continue to pose a challenge to the 2025 fiscal framework, attributing the strain to last-minute recruitments carried out by the previous administration. He revealed that wages and salaries had exceeded targets by GHC 1.3 billion in the first half of the year.
