Bank of Ghana Warns Against Unauthorised Forex Transactions

The Bank of Ghana (BoG) has issued a stern reminder to the public and financial institutions that all unlicensed foreign exchange dealings in the country remain strictly prohibited under the Foreign Exchange Act, 2006 (Act 723).

In a public notice released on Wednesday, the central bank cautioned individuals, institutions, and businesses against engaging in black market forex trading, pricing or quoting goods and services in foreign currencies—particularly the US Dollar (USD)—and conducting unauthorised payments in foreign currencies within Ghana.

“The Ghana Cedi remains the only legal tender in Ghana,” the statement stressed, adding that only persons or entities licensed or authorised by the Bank of Ghana are permitted to deal in foreign exchange activities.

According to the directive, residents of Ghana are prohibited from pricing, advertising, invoicing, or receiving payments in foreign currency for goods and services, including but not limited to:

• School fees
• Sale and rental of vehicles
• Sale and rental of real estate
• Airline tickets
• Domestic contracts
• Retail shopping
• Online sales
• Hotel accommodation

The Bank clarified that foreign currency invoices may only be issued to expatriates or non-residents, with proceeds paid into a Foreign Exchange Account (FEA) at a licensed bank. Additionally, all exchange rates applied must be in line with prevailing market rates of commercial banks and benchmarked against the BoG’s published reference rate.

The notice also assured the public that legitimate foreign exchange transfers for external payments remain available through the banking system, subject to regulatory requirements and banks’ internal processes.

The central bank warned that it will strictly enforce compliance, stressing that any institution or individual found in violation of Act 723 will face sanctions and legal action.

The reminder comes amid concerns over the growing use of foreign currencies, especially the USD, in domestic transactions, which the Bank of Ghana says undermines the stability of the cedi.