Dr. Johnson Asiama raises alarm over growing dollarisation in Ghana’s economy
The Governor of the Bank of Ghana, Dr. Johnson Asiama, has expressed concern over the growing dollarisation of Ghana’s economy, warning that the practice continues to erode public confidence in the local currency despite recent gains by the Cedi.
Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting in Accra on Tuesday, July 15, Dr. Asiama said the increasing trend of businesses pricing goods and services in U.S. dollars poses a serious threat to efforts aimed at stabilising the currency and ensuring broader macroeconomic stability.
“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.
Dr. Asiama also raised concerns about the disconnect between foreign exchange inflows and domestic economic reinvestment, noting that much of the country’s export earnings are not being retained or channeled into productive use.
“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.
“Ghana’s formal savings rate remains low, and our export value retention, particularly among SMEs and in the informal sector, is far below potential,” he added.
The Central Bank Governor called for a renewed effort to shift market sentiment and rebuild trust in the Cedi, stressing that confidence in the local currency is vital to sustaining the current macroeconomic gains.
