Ghana Tightens Grip on Dollar Withdrawals: Dollar Can’t be Accessed by Customers At Bank Counters any longer-Adongo

In a bid to slow the depreciation of the cedi, Ghana’s local currency, the Bank of Ghana (BoG) has announced plans to impose an almost complete ban on over-the-counter withdrawals of US dollars from financial institutions. According to Isaac Adongo, a BoG board member and MP for Bolgatanga Central, this move aims to regulate the use of the local currency and curb dollar speculation.

The New Rule

Under the new regulations, customers will only be able to access dollars for legitimate foreign transactions. Adongo explained, “If you put your dollars in a bank account, it’s okay. We are happy with that; you can only get dollars if indeed you are going to use them for a dollar-denominated transaction.” This means that individuals will no longer be able to withdraw dollars for domestic use.

Impact on Exchange Rates

The BoG is optimistic that this move will have a favorable effect on exchange rates. Adongo noted, “You’ll see the results reflected in the dollar rate.” The cedi has recently gained strength, reaching its strongest position in a year at GH₵13.1 to the US dollar in early May, after being steady at GH₵15.50 between February and April 2025.

Reason Behind the Move

The decision to restrict dollar withdrawals is partly due to the country’s efforts to address currency fluctuations. Adongo emphasized, “We’re eliminating dollar speculation through bank accounts. Deposited dollars will only be released for legitimate foreign transactions – dollars are meant for spending abroad, not domestically.”

Goldbod’s Partnership

The recent partnership between Goldbod and nine mining companies has contributed to the cedi’s strength. Payments are made in cedis instead of dollars, and 20% of their monthly expected gold production (200 kg) is secured for domestic purchase before export. This move has helped stabilize the cedi and reduce the country’s reliance on foreign currency.

What This Means for Ghanaians

The new regulations will likely have significant implications for individuals and businesses that rely on dollar transactions. While the BoG aims to promote the use of the local currency, some may find it challenging to adapt to the new rules. As Adongo reassures, “The Central Bank’s role includes regulating the use of our legal tender. When you request dollars, we’ll provide cedis instead.”

Looking Ahead

The BoG’s decision to restrict dollar withdrawals is a significant step towards stabilizing the cedi and reducing the country’s reliance on foreign currency. While there may be challenges ahead, the central bank is confident that this move will promote economic growth and stability in the long run.

Source: Africa Publicity