
Audio By Carbonatix
The Bank of Ghana (BoG) has injected about $10 billion into the forex market since January 2025 to help stabilise the cedi.
This is the total amount it has sold to commercial banks and businesses to meet their dollar needs, a move that has significantly supported the stability of the currency.
The intervention spans January to the first week of December 2025 and forms part of what officials describe as “dollar intervention.”
Sources close to Bank of Ghana tell Joy Business the move is part of a broader strategy to meet market demand for dollars, rather than a programme designed solely to defend the cedi.
Funding this support
The funding for the intervention has been drawn from the Bank of Ghana's Domestic Gold Purchase Programme, which has generated windfall gains from rising gold prices. These proceeds have been used to support the market through dollar auctions.
The Central Bank has executed the programme without depleting its reserves. Officials say the support has been structured to ensure Ghana’s debt obligations and reserve build-up efforts are not affected.
The BoG has channelled portions of the gold windfall into reserve accumulation, upcoming debt repayments, and dollar support for the market.
The latest Economic and Financial Data from the Central Bank showed that Ghana’s international reserves stood at $9.1 billion in December 2024.
By October 2025, reserves had improved to $11.4 billion, with strong indications that the year could close above $12 billion.
Some market analysts tell Joy Business that this proves the intervention has not led to reserve depletion.
In October alone, the Bank of Ghana injected $1.15 billion under the FX Intermediation Programme. The dollar auction was conducted on a market-neutral, spot basis.
Market watchers believe these interventions helped drove the cedi’s record appreciation in October 2025.
Data from the Bank of Ghana also show the cedi appreciated by 13.9% against the dollar as of the end of October 2025, and by 32.2% year-to-date.
Foreign Exchange Operations Framework
In November, the Bank of Ghana announced that its Board had approved a new Foreign Exchange Operations (FX) Framework to clarify the objectives and principles guiding its foreign exchange operations.
According to the regulator, the framework reinforces its commitment to macroeconomic stability under the inflation-targeting regime and a flexible, market-driven exchange rate system.
The framework is expected to deliver three core objectives:
- Support reserve accumulation to provide a buffer against external vulnerabilities.
- Reduce excessive short-term volatility in the FX market by addressing disorderly conditions without undermining exchange rate flexibility.
- Intermediate FX flows in a market-neutral manner, using inflows from the Gold Purchase Programme or export surrender requirements.
This means the Bank of Ghana will channel forex inflows into the market in an orderly and transparent manner without attempting to influence the direction of the exchange rate.
According to the Bank, future foreign exchange interventions will follow a “structured discretion-under-constraint” approach.
This ensures interventions do not target specific exchange rate levels but address market failures, such as the absence of hedging tools for major risks.
“Reserve accumulation and intermediation objectives will be achieved through transparent and well-communicated operations,” the Bank of Ghana said in a recent statement.
Latest Stories
-
SABC apologises after falsely linking Ghana to Ebola outbreak
3 minutes -
Ecobank, Mantrac Ghana partner to boost equipment financing for local businesses
6 minutes -
No formal report of MMDAs issuing permits for mining equipment – Lands Minister says despite JoyNews investigation
7 minutes -
When the assignment has two authors: One human, one AI
15 minutes -
BoG reviews effectiveness of cash reserve ratio reform
18 minutes -
I will lead Ashanti with less speeches and more work; COKA optimistic of victory in NPP Chairmanship race
22 minutes -
Minority MPs wear black in Parliament to protest Wontumi’s 20-year jail sentence
31 minutes -
She is already powering Ghana’s economy – Now fintech must learn to serve her
33 minutes -
20-year sentence for Wontumi is within the law NPP enacted – Inusah Fuseini
34 minutes -
Efua Sutherland Park land belongs to the state, Armah-Kofi Buah tells Parliament
47 minutes -
‘Ofori-Atta remains a fugitive from justice in Ghana’ – OSP insists despite US court ruling
47 minutes -
African countries must finance their own health systems – Akandoh
47 minutes -
Discipline in our schools: A national wake-up call
52 minutes -
Three critically injured as trailer crashes into eight vehicles at Asokwa
53 minutes -
Chief of Staff urges Ghanaians to uphold integrity, shared values for national development
54 minutes