BoG to tighten over-the-counter dollar withdrawals – Adongo

Ghana's recent currency gains are attracting global attention. The cedi has rebounded significantly, prompting regulatory changes. Isaac Adongo, a Bank of Ghana board member, announced plans to limit US dollar withdrawals. This move aims to sustain the cedi's momentum.

The new policy will tighten existing restrictions on dollar cash withdrawals. Routine dollar withdrawals from bank counters will be halted, except in rare cases. Adongo explained that dollars can only be accessed for specific transactions.

He emphasized the Central Bank's role in regulating foreign exchange use. "When you request dollars, we’ll provide cedis instead," he stated. This strategy aims to reduce speculative demand for dollars and ease pressure on the cedi.

Adongo believes these measures will positively impact the dollar rate. He noted that deposited dollars would only be released for legitimate foreign transactions.

The cedi has shown impressive growth this year. It was around GH₵15.50 to the US dollar earlier but rallied to GH₵13.1 by early May 2025. This makes it one of the best-performing currencies globally, boosting confidence in Ghana’s monetary authorities.

However, some experts argue that other factors contributed to this turnaround. Dr. Richmond Atuahene, a banking consultant and economist, believes multiple elements are at play—not just gold-backed strategies.

He highlighted an increase in foreign remittances as a key factor boosting cedi liquidity in banks. Additionally, strong cocoa export performance has also contributed significantly to the cedi's rise.

Dr. Atuahene pointed out that cocoa prices have surged recently—from $4,825 per metric tonne last year to about $8,000 today. He stressed that government fiscal discipline and tighter monetary policy are also crucial for stabilizing the economy.

As the cedi continues its rally, the Bank of Ghana’s actions show a commitment to defending its value through coordinated economic strategies—not solely relying on gold reserves.