BY Daniel Bampoe
Minority Chief Whip and Member of Parliament for Nsawam-Adoagyiri, Frank Annoh-Dompreh, has issued a sharp warning over the government’s new directive compelling all government contracts to be priced and executed strictly in Ghana cedis.
In a strongly worded statement, Frank Annoh-Dompreh accused President John Dramani Mahama’s administration of using artificial measures to prop up the struggling local currency.
“$4.4 billion just to artificially ‘stabilise’ the cedi… this government would be exposed big… a free fall with the loudest thud,” the NPP legislator wrote, suggesting that the recent move is cosmetic and unsustainable.
The Policy in Question
The directive, announced on July 24, 2025, and reinforced in the Mid-Year Budget Review presented by Finance Minister Dr. Cassiel Ato Forson, seeks to eliminate dollar-denominated government contracts.
The move is backed by the Foreign Exchange Act, 2006 (Act 723), a law that has been largely ignored in practice.
The NDC government argues that this shift is necessary to strengthen the cedi, reduce forex demand, and restore fiscal sovereignty.
But to Frank Annoh-Dompreh and the Minority in Parliament, the directive exposes the government’s desperation and poor handling of the economy.
A History of Strain
The MP pointed to the government’s previous interventions—including the much-touted gold-for-oil and gold-for-forex policies—as experiments that did little to halt the steep decline of the local currency.
Between 2020 and 2024, the cedi lost over 135% of its value, tumbling from GHS 5.5 to GHS 13.2 against the US dollar.
During the same period, Ghana’s international reserves fell sharply from $9.1 billion in 2021 to $5.8 billion in March 2025.
For Annoh-Dompreh, these figures are proof that the government has been firefighting instead of implementing structural reforms.
“You cannot pour billions into the market just to keep the cedi afloat temporarily and call it policy. Eventually, the truth will show,” he cautioned.
Supporters Versus Critics
While the government’s decision has been welcomed by some economists, who argue that denominating contracts in cedis will ease forex pressure and empower local businesses, Annoh-Dompreh remains unconvinced.
To him, the directive may bring short-term relief but does not address Ghana’s chronic fiscal indiscipline, rising debt, and overreliance on imports.
Enforcement Doubts
Another concern raised by Frank Annoh-Dompreh and echoed by policy analysts is enforcement.
The Foreign Exchange Act, which prohibits pricing contracts in foreign currency, has existed since 2006 but was consistently flouted, often with the tacit approval of government agencies themselves.
Meanwhile, some financial analysts has stress that unless government ministries lead by example, the directive risks become yet another unimplemented policy.
Political Undercurrents
Annoh-Dompreh’s criticism also reflects the Minority’s broader skepticism about the Mahama administration’s economic management. With inflation tied closely to cedi depreciation, the Minority argues that ordinary Ghanaians will continue to suffer if the government does not adopt long-term solutions rather than quick fixes.
