A common explanation for movements in the cedi is that the Bank of Ghana (BoG) “supplies dollars ” to influence the exchange rate. This phrase appears in commentary almost every week, yet it creates a misleading picture of how the exchange rate actually works.

The basic fact is straightforward: the Bank of Ghana does not create U.S. dollars — it creates cedis.
So when the Bank sells dollars on the market, it is not increasing the true supply of dollars in the economy. It is simply transferring part of its existing reserves to commercial banks in exchange for cedis.

And here is the part that really matters: those cedis are removed from circulation.
When the Bank sells USD, the amount of cedi liquidity in the system falls. With fewer cedis available, banks and businesses have less capacity to demand extra foreign currency. The pressure on the dollar eases not because more dollars suddenly exist, but because fewer cedis are chasing those dollars.

This is the actual mechanism behind exchange-rate movements in Ghana and the BoG’s role.

The idea that the cedi strengthens because the Bank “supplies more dollars” focuses on the wrong side of the market. It directs attention to the dollar when the decisive factor is the supply of cedis. The Bank of Ghana influences the exchange rate primarily by tightening or loosening cedi liquidity — not by expanding the supply of foreign currency.

The data from 2025 makes this crystal clear. During the year, the growth of key monetary aggregates slowed dramatically. Reserve money growth, which was rising at over 60 per cent in March, fell into negative territory by September. Growth in total liquidity (M2+) also dropped sharply, falling from above 30 per cent early in the year to single digits by October. In simple terms, the supply of cedis was being squeezed.

At the same time, the cedi appreciated strongly. The exchange rate moved from about 14.1 Ghana cedis to the dollar in April to around 10.5–11.4 between August and October — a gain of roughly 30 to 40 per cent. The timing was not a coincidence. As cedi liquidity tightened, demand for dollars eased, and the currency strengthened.

This episode illustrates a broader lesson: exchange-rate stability in Ghana depends far more on domestic monetary conditions than on how many dollars the central bank can inject into the market. When the Bank tightens liquidity, the cedi firms; when liquidity expands too quickly, pressure on the exchange rate returns.

In short, the phrase “BoG supplies dollars” survives because it reflects what traders see during FX auctions, but it misses the deeper truth. The central bank does not strengthen the cedi by supplying dollars. It strengthens the cedi by withdrawing cedis, which reduces demand for foreign currency.
Understanding this distinction leads to a clearer view of exchange-rate dynamics — and ultimately, to better policy discussions.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

Health Quarters Ghana, a social enterprise that promotes health and wellness through digital content, has donated hospital equipment valued at about GH¢50,000 to the Palliative and Geriatric Units of the Korle-Bu Teaching Hospital.

The items include crank beds with accessories, pulse oximeters, blood pressure apparatus, advanced wheelchairs and infrared thermometers to support the care of elderly and terminally ill patients. The donation was sponsored by McSarpong Medical Equipment and Supplies Limited, a fast-growing medical supplies company in Ghana.

Presenting the items on behalf of both organisations, Project Lead of Health Quarters Ghana, Dr Gideon Assan, said the donation reflects the group’s commitment to translating health advocacy into practical support for healthcare delivery.

“At Health Quarters, our focus has been to find innovative ways to make Ghanaians health-conscious and to educate them about their health. But we know that it is these health facilities that ultimately become the caregivers and the leading institutions for safeguarding our health. That is why we decided to move beyond education on social media and television to mobilise equipment to support quality care,” he said.

Dr Assan expressed appreciation to McSarpong Medical Supplies for supporting the initiative and making the donation possible.

Receiving the items, Head of Department of the Korle Bu Polyclinic and Consultant Family Physician Specialist, Dr George Bediako Nketiah, commended Health Quarters Ghana and called for greater stakeholder and philanthropic support to modernise and expand the hospital’s Palliative and Geriatric Units.

“In fact, it was as if you were listening to our prayers. We are currently working on expanding the Palliative and Geriatric Units, so these items are a welcome starting point,” he said.

Dr Nketiah revealed that plans and estimates for the expansion are already in place and could be shared with interested partners.

“With support from corporate Ghana, we can transform these units into a modern centre to better serve our patients. This is where we provide specialised palliative and geriatric care, and as we all grow older or face terminal illnesses, we have a collective responsibility to put this place in good shape,” he added.

The donation was supported by members of the Health Quarters Ghana team, including comic actor Clemento Suarez, as well as volunteers from various professional backgrounds.

A tour of the Palliative and Geriatric Units revealed deteriorating conditions, underscoring the urgent need for rehabilitation, expansion, and re-equipping with support from stakeholders and philanthropists.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.

The Story That Should Haunt Us All

It was just after dawn in a quiet farming village near Tadzewu. Mama Esi, a 72-year-old widow, had risen early to make her way to the district hospital. Her knees had been troubling her for weeks, and her daughter had finally saved enough for transport and consultation.

She never made it.
Halfway to the roadside, a speeding motorcycle—unregistered, unlicensed, and uninsured—struck her down. The rider, a teenage boy with no helmet and no training, fled the scene. By the time help arrived, Mama Esi was gone.

Her family buried her with borrowed money. The rider was later found, fined GH₵200, and released. No insurance. No justice. No accountability.

A National Pattern of Neglect
Mama Esi’s story is not an isolated tragedy. It is a symptom of a national failure to regulate the very vehicles that have become the backbone of rural mobility. Ghana is home to an estimated 2.5 to 3 million motorcycles and tricycles, yet up to 40% remain unregistered. These vehicles are essential for transporting food, goods, and people—but when left unregulated, they become instruments of chaos and death.

What the World Is Doing Right
Other nations have faced similar challenges—and acted decisively:

– Rwanda implemented a digital registration and GPS tracking system for all commercial motorcycles, reducing crime and improving tax collection.

– India mandates third-party insurance and helmet use, with biometric-linked licenses and vehicle registration tied to mobile apps.

– Vietnam launched a national motorcycle inspection program, phasing out old and unsafe bikes while offering subsidies for compliance.

These are not just safety measures—they are economic strategies. Ghana, too, can turn this crisis into opportunity.

A Policy for Progress: Register to Empower

A nationwide registration policy, when embraced and enforced by all Metropolitan, Municipal, and District Assemblies (MMDAs), can:

– Save lives by ensuring only trained, licensed riders operate roadworthy vehicles

– Generate revenue through road taxes, estimated at GH₵120 per vehicle, potentially yielding over GH₵300 million annually

– Create jobs in inspection, enforcement, insurance, and digital registration services

– Support planning by providing accurate data for transport infrastructure and safety campaigns

A Shared Responsibility: What Stakeholders Must Do

The DVLA must decentralize its operations, deploying mobile registration units to rural and peri-urban areas. It should simplify the process, reduce bureaucratic delays, and integrate biometric ID systems for traceability.

The Ministry of Transport must lead a national campaign—“Ride Right, Ride Registered”—with clear messaging, community ambassadors, and incentives for early compliance. This campaign should be backed by legislation that mandates registration and insurance for all two- and three-wheel vehicles.

MMDAs must see registration not as a burden, but as a revenue stream and a public safety imperative. Assemblies can partner with local chiefs, youth groups, and transport unions to organize mass registration drives, offer flexible payment plans, and enforce compliance through community by-laws.

The Ghana Police Service must shift from sporadic crackdowns to consistent, community-based enforcement. Officers should be trained to educate first, enforce second, and always act with fairness and transparency.

Civil society and the media must keep the spotlight on road safety, tell the stories of victims like Mama Esi, and hold institutions accountable. Advocacy groups can also support legal aid for victims’ families and push for stiffer penalties for unlicensed operation.

Riders’ Associations must take ownership of the solution. By registering their members, offering peer training, and collaborating with authorities, they can transform their image from rogue operators to responsible partners in national development.

From Tragedy to Transformation
Mama Esi’s death was preventable. So are the hundreds of others we lose each year to unregulated motorcycles and tricycles. Ghana cannot afford to look away any longer.

Let us honor her memory—not with silence, but with action. Let us register every ride, insure every journey, and build a transport system that values life, order, and opportunity.

The road to safety begins with a signature, a license plate, and the will to do better.

A Call for Immediate Action by Stakeholders

Ghana stands at a crossroads. The unchecked proliferation of unregistered motorcycles and tricycles is not just a transport issue—it is a national emergency. The time for debate has passed. The time for action is now.

The DVLA must urgently decentralize its operations. Mobile registration units should be dispatched to every district, especially in rural and peri-urban areas. The process must be simplified, digitized, and made affordable for first-time owners and youth cooperatives.

The Ministry of Transport must lead a bold, nationwide campaign—“Ride Right, Ride Registered”—with clear messaging, community ambassadors, and incentives for early compliance. This campaign should be backed by legislation that mandates registration and insurance for all two- and three-wheel vehicles.

MMDAs must embrace registration as both a safety measure and a revenue opportunity. Assemblies can organize mass registration drives at markets, lorry parks, and community centers. They must also enforce local by-laws that penalize unregistered operation and reward compliance.

The Ghana Police Service must shift from sporadic crackdowns to consistent, community-based enforcement. Officers should be trained to educate first, enforce second, and always act with fairness and transparency. Repeat offenders must face real consequences—not token fines.

Civil society and the media must keep the spotlight on road safety, tell the stories of victims like Mama Esi, and hold institutions accountable. Advocacy groups can support legal aid for victims’ families and push for stiffer penalties for unlicensed operation.

Riders’ Associations must take ownership of the solution. By registering their members, offering peer training, and collaborating with authorities, they can transform their image from rogue operators to responsible partners in national development.

Let this be the moment Ghana chooses order over chaos, safety over silence, and progress over paralysis. Let every stakeholder rise—not just to regulate, but to protect, empower, and build a transport system worthy of our people.

By Retired Senior Citizen
Creative Strategist & Editorial Contributor

Teshie-Nungua
[email protected]