Governor of the Bank of Ghana, Dr. Johnson Asiama, has sounded the alarm on the persistent dollarisation of Ghana’s economy, describing it as a threat to the long-term strength of the local currency.
Dr. Asiama warned that the trend continues to undermine the Cedi, despite recent signs of stability while wpeaking at the Graphic Business/Stanbic Bank Breakfast Meeting held in Accra on Tuesday, July 15.
“We are still grappling with a deep-rooted culture of dollarisation.
“Too many businesses continue to price in dollars, in real estate, education, and luxury retail, despite transacting entirely within Ghana.
“This practice not only violates legal tender laws but also undermines confidence in the Cedi,” he stated.
Beyond pricing practices, Dr. Asiama also raised concern over the inefficient recycling of foreign exchange earnings into the local economy.
According to him, even though Ghana has seen improved export receipts in recent months, the benefits are not being fully realised.
“Even more concerning is the mismatch between forex inflows and domestic reinvestment.
“While export receipts have risen, a significant portion is either held offshore or not channelled back into productive activity at home,” he noted.
He emphasized that Ghana’s formal savings rate remains unacceptably low and warned that export value retention, especially among small and medium enterprises (SMEs) and the informal sector, continues to fall below its potential.
“Ghana’s formal savings rate remains low, and our export value retention, particularly among SMEs and in the informal sector, is far below potential,” Dr. Asiama added.
