Govt to stop awarding contract in foreign currency from July 24 – MoF

Effective Thursday, July 24, 2025, no government contract will be awarded in any foreign-denominated currency, the Minister of Finance, Dr Cassiel Ato Forson, announced, speaking on the floor of Parliament on Thursday.

Presenting the 2025 Mid-Year Budget Review in Parliament on July 24, 2025, the Finance Minister said the directive not to award government contracts in foreign currency is a directive from President John Dramani Mahama.

He explained that the pricing of goods and services and the award of contracts in foreign currency pose significant risk to fiscal management with severe implications for the stability of the local currency.

“Unfortunately, foreign currencies are becoming the means of transacting business in Ghana. This trend, if not checked, will erode the confidence in our currency, drive inflation, and result in the loss of value in the symbol of our sovereignty.

To curb this unfortunate development, President John Dramani Mahama has directed that, beginning today, 24th July 2025, no contract awarded by the government, irrespective of the source of funding, should be denominated in foreign currency,” he noted.

He added that, “We also want to use this opportunity to remind the public that per the Foreign Exchange Act, 2006 (Act 723), companies, institutions, and individuals are prohibited from pricing, advertising, receiving or making payments for goods and services in foreign currencies in Ghana without written authorisation from the Bank of Ghana.”

In a related development, the Bank of Ghana (BoG) has warned that transacting business in Ghana using a foreign currency without written authorisation secured from its offices is prohibited by law.

In addition, the Central Bank of Ghana has cautioned that any person or persons who engage in foreign exchange business without a licence issued by the BoG must desist from such business.

In a press release, BoG said such violations are punishable on summary conviction, by a fine of up to seven hundred (700) penalty units or a term of imprisonment of not more than eighteen (18) months, or both.

“Bank of Ghana hereby cautions the general public to desist from dealing in illegal forex activities (black market transactions), pricing, advertising, receipting, or making payments for goods and services in foreign currency in Ghana, without the requisite licence or authorization from the Bank of Ghana.

“The General Public is hereby notified that the sole legal tender in Ghana is the Ghana Cedi. Bank of Ghana, in collaboration with National Security and Law Enforcement Agencies, will continue to clamp down on illegal foreign exchange operations. All offenders shall be dealt with in accordance with the law,” parts of the BoG press release read.