BoG Bans Dollar Pricing for School Fees, Rent, Airline tickets
The Bank of Ghana (BoG) has reminded the public about a key law. Under the Foreign Exchange Act, 2006 (Act 723), unlicensed or unauthorized foreign exchange transactions are strictly prohibited. The BoG bans dollar pricing for school fees, rent, and many other goods. This includes black market dealings. It also includes pricing, quoting, advertising, and receiving payments in foreign currencies like the US dollar. In a statement on Wednesday, August 27, 2025, the Central Bank directed institutions and individuals to stop these practices. Ms. Aimee V. Quashie signed the statement.
The Bank emphasized a simple point. The Ghana Cedi remains the country’s only legal tender. Therefore, no resident of Ghana should price, advertise, invoice, or receive payments in foreign currency. This applies unless the Bank of Ghana has given a license or authorization. In fact, economic analysts explain that such dollarization weakens the cedi. It also makes monetary policy less effective.
The prohibited transactions include, for instance, school fees. They also include the sale and rental of vehicles and real estate. Furthermore, airline tickets, domestic contracts, and retail shopping are all covered. Other banned transactions are online sales and hotel accommodations.
The statement clarified a key distinction. The Bank may only issue foreign currency invoices to expatriates (foreign nationals) or non-residents. Consequently, they must pay proceeds into a Foreign Exchange Account (FEA). This account must be with a licensed bank. The BoG further explained a rule for these invoices. Exchange rates must reflect prevailing commercial bank rates. They should also be benchmarked against the BoG’s published reference rate. The Bank must not set them arbitrarily.
The Bank assured the public about one thing. Foreign exchange remains transferable through the formal banking system for legitimate external payments. These transactions are subject to regulatory thresholds. They must also follow commercial banks’ internal processes. The Bank of Ghana reiterates its commitment to enforcing compliance. It warns that violators will face sanctions and legal action. This is in accordance with Act 723. BoG bans dollar pricing to protect the cedi’s stability.
Source: Kobina Welsing for CitiNewsroom, and Mohammed Ali for Graphic Online.com, August 27, 2025
