BoG to Restrict Over-the-Counter Dollar Withdrawals as Cedi Strengthens-Ghana
Ghana’s central bank is stepping up its efforts to protect the cedi’s recent gains by targeting over-the-counter US dollar withdrawals. Bank of Ghana board member and MP Isaac Adongo revealed that the new policy will impose tighter controls on accessing physical dollars from banks. The idea is to stop people from treating dollars as a store of value or using them for speculative purposes, which puts unnecessary pressure on the local currency.
According to Adongo, dollar withdrawals from banks will now only be allowed for verified foreign transactions. He stressed that the central bank’s role is to manage how foreign exchange circulates in the economy. If you have dollars in your bank account, they’ll remain there, but unless you’re using them for a legitimate external payment, you’ll get cedis instead. It’s a tough but necessary stance if we’re going to build lasting stability around the cedi.
The timing of this policy shift aligns with the cedi’s impressive performance so far in 2025. From a low of GH₵15.50 to the dollar earlier in the year, it climbed to GH₵13.1 by early May. This rally has made it one of the world’s best-performing currencies this year and boosted confidence in Ghana’s monetary authorities. Clearly, something is working, and the BoG wants to keep that momentum going.
But not everyone believes the currency rebound is only due to central bank policies or gold-backed programs like the gold-for-oil initiative. Economist Dr. Richmond Atuahene argues that rising remittances and cocoa export earnings have also played a major role. He pointed out that global cocoa prices have nearly doubled in the last year and that remittance inflows are injecting a lot of cedis into the banking system, which helps ease demand for foreign exchange.
Atuahene also mentioned that the broader picture includes tighter monetary policy and government spending discipline. So while gold might be part of the equation, it’s not the whole story. In the end, Ghana’s currency stability seems to be the result of a well-coordinated set of efforts—from external trade performance to internal fiscal management—and the latest dollar withdrawal restrictions are just another tool to keep that progress on track.
Source: Citi newsroom