The Director of the Institute of Statistical, Social and Economic Research (ISSER), Prof Peter Quartey, has dismissed claims of a US dollar shortage in Ghana, despite growing concerns among some exporters and importers.
Speaking on Joy FM’s Super Morning Show on Monday, July 21, Prof Quartey clarified that there is no scarcity of foreign currency within the formal banking system. According to him, banks remain well-stocked with dollars but are prioritising digital transactions and cheque payments over large physical cash withdrawals.
“There is no shortage of forex in the market,” he stressed. “If you have an account and you want to import and you have all the documentation, there is no problem; there is no limit on how much you can pay.”
He explained that the difficulty arises mainly for those who demand physical cash without having deposited any foreign currency in their bank accounts.
“If you have deposited physical cash, you will have access to your money. But it is those who don’t have accounts or have not deposited any physical cash, yet they want physical cash, that is where the problem is,” he clarified.
Cash Transactions Distorting the Market
Prof Quartey criticised the practice of bypassing the formal banking system in favour of cash-based transactions, particularly among some business groups.
“Unfortunately for our brothers and sisters in GUTA and the rest, they prefer to transact in cash. They don’t want to use the banking system because when you do that, government can track the value of your import, so you pay the appropriate taxes,” he pointed out.
He accused some traders of using the black market to under-invoice goods, thereby evading taxes and distorting the forex market.
“They prefer to deal in the black market, in physical cash, where issues of under-invoicing and tax avoidance can happen. That is the problem,” Prof Quartey argued.
Call for a Cashless Approach
Prof Quartey also warned of the risks associated with large cash transactions, urging the public to embrace digital payments and the formal financial system for foreign exchange dealings.
“Let’s educate our people to use the banking system. We are saying we are moving cashless, and yet you want to trade in forex and take huge sums of physical cash with you—it is not safe,” he cautioned.
He reiterated his position, stating emphatically: “I don’t think there is a shortage of forex in the market.”
Prof Quartey’s comments come amid growing debate over Ghana’s forex market, with stakeholders calling for greater transparency and reform to reduce black market activity.
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