Businesses across Ghana’s major trading centres are increasingly sourcing foreign exchange from informal dealers as persistent dollar shortages in commercial banks drive demand to parallel markets where rates exceed official levels.
At forex bureaus on Wednesday, the dollar sold for GH¢11.90, significantly higher than the Bank of Ghana’s interbank rate of GH¢10.97, reflecting a gap of nearly GH¢1 per dollar that continues to shape commercial transactions across the economy.
In Accra, Kumasi and Takoradi, many businesses now routinely buy and sell dollars outside the formal banking system through personal networks and unlicensed forex dealers, commonly referred to as Abokis. While such trading operates in a legal grey area under Ghana’s Foreign Exchange Act, the practice persists because demand remains high and enforcement proves difficult.
The Importers and Exporters Association of Ghana has repeatedly raised concerns about limited dollar availability at banks, forcing members to rely on parallel markets that increase operating costs and pass those expenses on to consumers. At major trading hubs such as Abossey Okai in Accra and Adum in Kumasi, spare parts dealers openly acknowledge accessing informal forex dealers who supply cash immediately, unlike banks that often delay or restrict dollar access.
The impact extends beyond traders. Landlords increasingly quote rent in dollar terms in urban areas, while parents paying fees at international schools often find charges adjusted based on parallel market rates. Prices at supermarkets and pharmacies quietly rise when importers pay premium rates for dollars.
Professor Peter Quartey, Director of the Institute of Statistical, Social and Economic Research (ISSER), has warned that widespread informal forex trading affects government revenue. Transactions outside the banking system make it easier for traders to understate import values, leading to lower tax payments and reduced state revenue that weakens government capacity to invest in public services and infrastructure.
Economists say the situation reflects deeper structural issues within the economy. Ghana depends heavily on imports, but foreign currency supply remains limited. Banks themselves struggle to meet demand, while strict documentation requirements discourage small traders, creating conditions for an informal system to flourish alongside official channels.
Authorities have attempted to respond. Security agencies have conducted operations targeting unlicensed forex traders, while the Bank of Ghana has announced plans to inject up to one billion dollars into the market through foreign exchange auctions to improve dollar supply and stabilise the cedi.
Despite these interventions, confidence remains fragile. Many businesses still prefer informal channels because they offer predictable and responsive service. Until banks can reliably meet foreign exchange demand and trust in the cedi improves, the parallel dollar market is likely to remain a feature of Ghana’s economy.
Ghana is currently operating with two exchange rates. One exists in official data and policy documents, while the other exists in markets, shops and daily transactions. It is this second rate that quietly shapes prices, influences spending and reveals persistent tensions in currency management.
