Cedi stability collective responsibility — BoG Governor
The Governor of the Bank of Ghana (BoG), Dr Johnson Pandit Asiama, has urged the general public to support the government’s efforts in strengthening the cedi and improving the economic fortunes of the country.
He said Ghanaians must take a keen interest in protecting the cedi as the only legal tender for all commerce and transactions, as well as reporting unscrupulous people who would engage in counterfeiting and other practices that could undermine the cedi.
“The dollar is not a legal tender in Ghana. What this means is that if you pay me in dollars for a service, I have every right not to accept. Consciously, we must protect the cedi and ensure that it is the only form of transaction in this country.
“Legal tender underpins the legitimacy of pricing, the enforceability of contract, the structure of our billing systems and the integrity of our financial markets,” he said.
Dr Asiama was speaking at the 11th Absa- UPSA Law School Quarterly Banking Roundtable programme at the University of Professional Studies, Accra (UPSA) last Thursday.
The event brought together banking professionals, regulators and academia to discuss legal issues confronting the banking sector and the economy in general.
It was on the topic: “Ghana’s Legal Tender, Monetary Policy and the Rising Cedi.”
Legal tender
Dr Asiama reiterated that the cedi remained the only legal tender backed by law for all transactions, warning that any deviation from the cedi in preference for foreign currencies was not only illegal but an assault on the country’s sovereignty.
“Any attempt to displace the cedi in ordinary commercial transactions, whether through mandatory dollar invoicing, preferential pricing in foreign currency or informal currency substitution, is not only economically distorting but also legally impermissible. It challenges the very fabric of monetary sovereignty,’ he said.
According to him, the disturbing trend of businesses pricing their services in foreign currencies such as the US dollar or accepting payment in currencies other than the cedi was a threat to the country’s well-being.
He emphasised that such acts, including counterfeiting and other economic crimes, undermined confidence in the cedi, ultimately harming the nation’s economy and development.
“In too many instances, whether in real estate, whether in paying school fees or high-value retail, the cedi is bypassed not because it is legally unfit, but we have allowed perception to triumph policy and convenience to triumph sovereignty,” he added.
While lauding the performance of the over 42 per cent gain by the cedi since the beginning of the year, the BoG Governor said efforts to sustain the cedi were a collective responsibility, adding, “The cedi can be as good as any of the best-performing and recognised currencies.”
Economic destiny
Dr Asiama traced the history of the cedi during its introduction in 1965 by the country’s first President, Dr Kwame Nkrumah, and explained that it was a very significant moment as it represented an independent nation ready to chart its path in the pursuit of prosperity and development.
“The introduction of the cedi to replace the West African pound by Dr Kwame Nkrumah in 1965 marked a profound act of economic self-determination.
It became a symbol of national identity, of institutional emergence and the aspiration of an independent people,” he added.
He announced that President John Dramani Mahama would soon launch the 60th anniversary of the cedi, which would kick-start a series of activities commemorating the introduction of the cedi.
Importance
The Dean of the UPSA Law School, Prof. Kofi Abotsi, said the event was an important platform to bring all sector players in the banking industry to stimulate discussions on how to improve the legal framework of the industry.
Writer’s email: emma.hawkson@graphic.com.gh