Over-the-Counter Dollar Withdrawals to Be Scrapped – Adongo

Isaac Adongo, a board member of the Bank of Ghana (BoG), has announced that the central bank will tighten restrictions on over-the-counter withdrawals of US dollars in a move aimed at stabilizing the cedi.

Although current regulations allow limited cash withdrawals in foreign currency when justified, Adongo revealed that the BoG is preparing to implement a near-total ban, permitting dollar access only under exceptional circumstances.

Speaking in an upcoming PM Express interview with Evans Mensah, the Bolgatanga Central MP clarified, “We’re fine with you keeping dollars in your bank account, but access to physical dollars will only be allowed for genuine dollar-based transactions.”

He emphasized the Bank of Ghana’s mandate to manage the legal tender system, stating, “If you ask for dollars, we will give you cedis instead. That’s our responsibility.”

Adongo believes this policy will help stabilize the foreign exchange market, especially as the cedi gains international recognition for its recent performance as the world’s best-performing currency.

“You’ll see this reflected in exchange rates,” he said. “This move eliminates speculative dollar hoarding through banking systems. Dollars should be used abroad, not for local purposes.”

Strong Performance by the Cedi

The cedi has shown significant improvement, holding steady around GH₵15.50 to the US dollar between February and April 2025 before strengthening to GH₵13.10 in early May—its highest point in a year.

According to Databank Research, the cedi’s surge is partly due to a deal between Goldbod and nine mining companies, which allows 20% of their gold output (approximately 200kg monthly) to be sold domestically in cedis prior to export.

Yet, the main catalyst appears to be a sharp rise in export earnings. In January and February 2025 alone, Ghana recorded over $2.3 billion in gold exports—the highest two-month total in more than a decade.

The cedi has also gained against other major currencies. The British pound dropped to GH₵17.45 from GH₵20.60, the euro declined to GH₵14.78 from GH₵17.72, and the Canadian dollar fell to GH₵9.40 from GH₵11.00.

To preserve these gains, authorities are rolling out additional measures to strengthen the economy and ensure long-term currency stability.