The Minister for Finance, Dr. Cassiel Ato Forson, has announced that the government will soon impose a complete ban on the award of contracts in United States dollars, signaling a major policy shift aimed at strengthening the use of the Ghana cedi in public financial transactions.
Dr. Forson emphasized that all government contracts can and should be awarded in the local currency, the Ghana cedi, rather than relying on foreign denominations.
“It is unnecessary for government contracts to be priced or awarded in US dollars when we have a functioning local currency. This practice undermines the cedi and creates avoidable pressure on our foreign reserves,” Dr. Forson stated.
The Finance Minister explained that the new policy is part of broader efforts to stabilize the cedi, manage inflation, and promote economic sovereignty. He added that directives would be issued to all ministries, departments, and agencies (MDAs) to ensure strict compliance with the new regulation.
“We believe this change will not only help reduce the demand for foreign currency but also restore confidence in the cedi as a reliable medium of exchange,” he said.
Dr. Forson noted that exceptions may be made only in rare cases where contracts involve foreign suppliers or highly specialized imports that require dollar transactions. Even in such cases, he said, strict justification will be required, and approvals will be centralized.
The announcement has already sparked discussion among contractors and procurement experts, many of whom have welcomed the move as a step toward curbing dollarization in Ghana’s economy.
The Finance Ministry is expected to release detailed guidelines on the implementation of the policy in the coming weeks.
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