Joe Jackson is the CEO of Dalex Finance
Chief Executive Officer of Dalex Finance, Joe Jackson, has praised aspects of the 2025 Mid-Year Budget Review but raised concerns over the government’s new directive banning the use of foreign currency, particularly the US dollar, in public contracts and businesses.
Speaking on Morning Starr with Naa Dedei Tettey on Friday, July 25, Jackson said that while the budget signals progress, the de-dollarisation policy would only be effective under certain economic conditions.
“I’m not sure how effective whether that will make the cedi better or not. When the cedi is stable, there’s no need for us to quote in dollars. Once the cedi is not stable, then the dollar becomes an index of value, a traditional index of value,” he explained.
He noted that inflation and currency depreciation are the root causes of dollarisation in Ghana’s economy.
“As much as I appreciate when we talk about de-dollarizing the economy, I believe dollarizing the economy and the index only happen because there is high inflation and the cedi is depreciating,” he added.
“For me, it is about government undertaking only contracts that they have money to pay for so that they can pay promptly, it is about us [Ghana] keeping the cedi stable.”
Jackson’s comments come in the wake of a major announcement by finance minister Dr Cassiel Ato Forson during the presentation of the 2025 Mid-Year Budget Review to Parliament on Thursday, July 24.
Dr Forson revealed that President John Dramani Mahama has directed that, effective immediately, all government-awarded contracts must be denominated in the Ghanaian cedi, regardless of the funding source.
He also reminded the public that, under the Foreign Exchange Act, 2006 (Act 723), it is illegal for companies, institutions, and individuals to price, advertise, receive, or make payments in foreign currencies in Ghana without authorisation from the Bank of Ghana.
Watch the latest episode of BizTech below: