Cedi is Ghana’s sole legal tender – Central Bank cautions public

The Bank of Ghana (BoG) has issued a stern reminder to the public that unlicensed or unauthorised foreign exchange transactions are strictly prohibited under the Foreign Exchange Act, 2006 (Act 723).

In a statement dated Wednesday, 27 August 2025, and signed by Ms. Aimee V. Quashie on behalf of the Secretary of the Bank, the Central Bank cautioned individuals, businesses, and institutions to immediately cease such practices or face sanctions.

The BoG emphasised that the Ghana Cedi remains the only legal tender in the country, and no resident is permitted to price, advertise, invoice, or receive payments in foreign currencies—including the US dollar—unless duly authorised by the Bank.

The prohibited transactions cover a wide range of sectors, including the payment of school fees, vehicle sales and rentals, real estate deals, airline tickets, domestic contracts, retail shopping, online sales, and hotel accommodation.

According to the statement, only expatriates or non-residents may be issued invoices in foreign currency, and such proceeds must be channelled through a Foreign Exchange Account (FEA) with a licensed bank. The BoG further directed that exchange rates quoted on these invoices must align with prevailing commercial bank rates and be benchmarked against the Central Bank’s published reference rate, not set arbitrarily.

“The Bank wishes to remind the general public that foreign exchange remains transferable through the formal banking system for legitimate external payments, subject to regulatory thresholds and commercial banks’ internal processes,” the statement read.

The Central Bank reaffirmed its commitment to strengthening compliance in the foreign exchange market, stressing that offenders will face legal action and sanctions as provided under Act 723.

This move forms part of BoG’s broader efforts to clamp down on black market activities, which continue to undermine currency stability and weaken confidence in the Cedi.