In a bold move to safeguard the stability of the Ghana cedi, Finance Minister Dr. Cassiel Ato Forson has announced a sweeping directive banning the pricing and awarding of government contracts in foreign currencies.
Delivering the 2025 Mid-Year Budget Review in Parliament on Wednesday, Dr. Forson disclosed that President John Dramani Mahama has directed that, effective immediately, no government contract — regardless of the source of funding — shall be denominated in foreign currency.
“The pricing of goods and services and the award of contracts in foreign currency pose a significant risk to fiscal management, with serious implications for the stability of our cedi,” Dr. Forson said. “If this trend is not checked, it will erode confidence in our national currency, fuel inflation, and diminish the value of the very symbol of our sovereignty.”
The minister raised concerns over the increasing use of foreign currencies — particularly the U.S. dollar — in local transactions, warning that the practice undermines Ghana’s monetary independence and complicates economic management.
To reinforce the new directive, Dr. Forson reminded businesses, institutions, and individuals that under Foreign Exchange Act 2006 (Act 723), it is illegal to price, advertise, quote, or make payments for goods and services in foreign currencies without prior written approval from the Bank of Ghana.
“This law is still in force and will be fully enforced,” he warned. “We call on the public to support this initiative to strengthen the cedi and restore confidence in our local economy.”
The clampdown is expected to affect a wide range of sectors, including infrastructure, procurement, and service contracts, many of which have historically been tied to foreign currency terms — especially when financed by development partners or executed by foreign contractors.
Analysts see the policy as a crucial step in reinforcing fiscal discipline and stabilizing the economy amid inflationary pressures and currency depreciation. However, questions remain about how the directive will be implemented, particularly in cases where external funding agreements are already tied to foreign currency conditions.
This announcement forms part of a broader strategy outlined by the government to restore macroeconomic stability, improve public financial management, and consolidate recent gains under the IMF-backed economic recovery programme.
Ghana|Atinkaonline.com
