Bank of Ghana Urges Businesses to Use Cedi to Sustain Currency Gains and Calls for Crypto Regulation

The Bank of Ghana has called on businesses operating within the country to conduct transactions in the local currency, the cedi, to help sustain the recent gains and stability it has achieved. This move aims to boost confidence in the cedi and ease the pressure on Ghana’s foreign exchange reserves. The governor emphasized that the cedi is the only legal tender and businesses must support national efforts by transacting in it.

Speaking at the 9th Ghana CEO Summit, Governor Dr. Johnson Asiama urged CEOs and business leaders to strengthen domestic financial mechanisms to ensure the cedi’s long-term stability. He highlighted the critical role of the private sector in supporting these efforts as Ghana continues to recover economically.

Additionally, the Bank of Ghana is working alongside the Ministry of Finance, the Social Security and Insurance Trust (SIGA), and the Ghana Stock Exchange to shift from short-term financing towards sustainable, long-term funding solutions. Reviving the domestic capital market is a key part of this strategy to promote economic stability.

Dr. Asiama also raised concerns about the growing adoption of cryptocurrencies in Ghana, noting that nearly 17 percent of Ghanaian adults hold crypto assets. He stressed the urgent need to implement regulations to manage this rapidly expanding sector, particularly given its popularity among youth, tech entrepreneurs, and women-led businesses.

In conclusion, the Bank of Ghana is prioritizing the strengthening of local currency use and regulatory frameworks to ensure economic stability and protect the financial system from emerging risks such as those posed by unregulated crypto activities.

Source: Citi newsroom