Acting Rent Commissioner Frederick Opoku has strongly condemned the increasing practice of landlords advertising and charging rent in United States dollars. He labelled this trend as unlawful and a worrying sign of economic indiscipline in Ghana. Mr. Opoku questioned the legality of such transactions when the cedi is the official currency.
He highlighted that some property owners openly quote rents in millions of dollars without apparent fear of penalties. This bold display suggests a weakening in the enforcement of financial rules. Mr. Opoku raised this concern during an appearance on JoyNews’ Super Morning Show.
This issue of dollarisation, particularly in the property rental market, is not new to Ghana. It has been a persistent worry for financial regulators and policymakers. These concerns often surface during periods when the Ghanaian cedi weakens against the dollar and economic instability is present. Authorities have repeatedly warned against using foreign currencies for local transactions without legal authorization.
The Rent Control Department is actively engaging with the Bank of Ghana’s Financial Markets Department. Their goal is to find ways to stop the spread of dollar pricing in the real estate sector. Although directives exist against pricing goods and services in foreign currencies, making them stick is a significant challenge, according to Mr. Opoku.
The situation reflects wider economic challenges faced by Ghana. It raises questions about the effectiveness of financial regulation and enforcement mechanisms. As the Rent Control Department works with the central bank, the property market and consumers will be watching for clearer directives and more stringent enforcement. The Bank of Ghana has previously indicated its commitment to tackling dollarisation as a key priority, especially in light of potential economic volatility.