Mid-Year Budget: Gov’t Bans Public Contracts in Foreign Currency to Protect Cedi – Ato Forson
Finance Minister announces immediate ban on awarding government contracts in foreign currencies, calling it a vital step to defend the cedi and maintain economic stability.
- Gov’t bans foreign currency pricing for public contracts effective July 24
- Policy aims to protect cedi, reduce inflation, and enhance fiscal discipline
- Bank of Ghana approval still required for any FX transactions under the law
As part of efforts to stabilize the Ghanaian cedi and reinforce fiscal discipline, the government has officially banned the pricing and awarding of public contracts in foreign currency.
Delivering the 2025 Mid-Year Budget Review to Parliament on Wednesday, July 24, Finance Minister Dr. Cassiel Ato Forson stressed that the increasing use of foreign currencies for domestic contracts poses a direct threat to Ghana’s economic stability.
“If not addressed, this trend could weaken confidence in the cedi, fuel inflation, and undermine our monetary sovereignty,” Dr. Forson warned.
He announced that, effective immediately, no government contract—regardless of the funding source—is to be awarded in any foreign currency, following a directive from President John Dramani Mahama.
Dr. Forson also reminded the public that Ghana’s Foreign Exchange Act prohibits any pricing, invoicing, or payment in foreign currency without prior approval from the Bank of Ghana.
He emphasized that the move is part of a broader strategy to protect the value of the cedi and strengthen macroeconomic foundations.
