We all know the cedi is Ghana’s money. Yet over time, quoting in foreign currency has quietly slipped into daily business. The Bank of Ghana is now reminding everyone that the cedi alone is legal tender, and this renewed enforcement is about much more than rules, it’s about strengthening trust in our economy.

 

Why is the Bank of Ghana enforcing cedi pricing?

The Bank of Ghana (BoG) has renewed its enforcement of the rule that all goods and services in Ghana must be priced, advertised, invoiced, and paid for in Ghana cedis (GHS). This comes from the Foreign Exchange Act, 2006 (Act 723), and enforcement has been stepped up because dollar pricing continues to creep into sectors like rent, school fees, and even retail.

The reason is simple:

• Protect the cedi’s role: If Ghana shifts to dollars for daily trade, the cedi loses relevance.
• Curb dollarization: Heavy use of the dollar inside Ghana weakens confidence in the cedi and pushes up inflation.
• Limit black market FX: By enforcing cedi-only pricing, BoG aims to reduce illegal parallel market activity. 

 

Dollar Pricing in Ghana vs Other Countries

Ghana is not alone in this approach. Many African countries protect their local currencies:

• Nigeria: The naira is the only legal tender. Dollar pricing is outlawed, and banks face restrictions on USD-based products.
• Kenya: All domestic payments must be made in Kenyan shillings. FX dealers are tightly regulated.
• Morocco: The dirham is the only legal tender. While foreign currency accounts are allowed for trade and investment, businesses must transact in dirhams locally.

Enforcing local currency pricing is normal. The difference lies in how countries combine enforcement with economic policies that build trust in their money.

 

Ghana’s Dollarization Challenge

The law is clear, but practice is harder:

1. Inflation and depreciation: Fear of cedi weakness drives people to peg to the dollar.
2. Limited official FX access: If banks can’t meet FX needs, businesses go to the black market.
3. Uneven enforcement: Rules are not always applied consistently.
4. Legacy USD contracts: Older agreements often quote in dollars, complicating transitions.

 

Dollar Pricing in Ghana’s Real Estate Industry

No sector feels this more than real estate in Ghana. Developers rely heavily on imported materials like steel, tiles, glass, fixtures, and elevators all purchased in USD.

1. Legal view: Quoting in USD without BoG approval is against the law.
2. Business view: Developers use USD pricing to protect against cedi depreciation.

This explains why many landlords quote rents in dollars. It’s not about breaking the law, it’s about managing risk.

 

 

What Happens If You Don’t Comply with BoG Rules?

The BoG’s enforcement isn’t designed to punish, but ignoring it carries risks:

1. Legal risk: The Foreign Exchange Act (Act 723) makes foreign currency pricing unlawful without authorization.
2. Reputational risk: In real estate, trust is everything. Non-compliance can damage credibility with clients and partners.
3. Practical risk: Contracts quoted in USD could be challenged, creating disputes and uncertainty.

Non-compliance creates avoidable problems. Compliance, on the other hand, builds confidence and keeps your business future-proof.

 

Finding a Middle Ground for Real Estate Contracts in Ghana

There are smart ways to stay compliant and still protect your investment:

1. Cedi-first contracts with review clauses: Quote in cedis but include lawful provisions to review prices if the cedi-dollar exchange rate shifts beyond an agreed point.
2. Bank hedging tools: Use forward contracts or other lawful financial products through authorised banks.
3. Policy support: Promote local manufacturing of building materials to reduce reliance on dollar imports.

The Bigger Picture for Cedi Stability

For enforcement to stick, Ghana needs:

• Low and stable inflation.
• Reliable FX access through banks.
• Consistent enforcement across all industries.

When these conditions are met, people will naturally use the cedi not just because it’s required, but because it’s trusted.

 

What This Means for Landlords, Developers, and Tenants in Ghana

1. All pricing, invoicing, and payments must be in cedis, unless BoG gives special authorization.
2. Old USD contracts should be reviewed and adjusted for compliance.
3. Landlords and developers must use legal strategies to protect against exchange rate risk without breaking the law.
    

 

Guidance from Akka Kappa

The Bank of Ghana’s directive is a reminder of the importance of cedi-first pricing. For landlords and developers, the key is knowing what it means in practice. At Akka Kappa, we provide guidance to help you understand how this impacts your contracts and how to remain compliant, while still protecting your investments.

Key sources

• BoG Notice: Prohibition of pricing/payment in foreign currency (Sept 12, 2025). Reinforces Act 723; cedi is sole legal tender for domestic transactions. Bank of Ghana
• BoG Notice No. BG/GOV/SEC/2025/26 (Aug 27, 2025). Unauthorised FX transactions; lists affected sectors; sets expat/non-resident invoicing exception, FEA requirement, and rate benchmark. Bank of Ghana
• BoG website: Unauthorised Foreign Exchange Transactions (Sept 12, 2025). Public reminder and enforcement stance. Bank of Ghana
• BoG Notice No. BG/GOV/SEC/2025/27 (Aug 27, 2025). Amended traveller cash rules; FX-5 declarations; penalties; effective Sept 1, 2025. Bank of Ghana
• Directive to banks on unfunded FX cash payouts to large corporates (Aug 21, 2025). Coverage summarizing the restriction to curb market pressure. GBC Ghana Online