The Bank of Ghana (BoG) is set to inject up to $1 billion into the market in November under its revised Foreign Exchange Market Intermediation Programme.

The initiative could see the Central Bank auction about $300 million twice a week in November to licensed commercial banks on a spot basis.

This was contained in a notice to dealers and traders of participating commercial banks seen by JoyBusiness.

The Bank of Ghana stated that subsequent monthly volumes will be determined based on prevailing market conditions.

It added that the Bank remains firmly committed to transparency in its operations and will continue to disclose all relevant information regarding its foreign exchange activities, including FX intermediation and intervention.

October Market Intervention

In October, the Bank of Ghana injected $1.15 billion under the FX Intermediation Programme.

The dollar auction was carried out in what the Central Bank described as a market-neutral manner on a spot basis.

Market watchers believe these interventions contributed significantly to the cedi’s record appreciation in October 2025.

Data from the Bank of Ghana shows that the cedi appreciated against the dollar by 13.9% as of the end of October 2025, and by 34.86% year-to-date.

Average daily trading volume on the interbank market stood at $22 million, contributing to a total monthly interbank volume of $484 million.

Some commercial banks have attributed the cedi’s rally to new forex and monetary policy measures that have improved dollar supply and strengthened enforcement of foreign exchange regulations.

A key factor has been the Bank of Ghana’s decision to revise its forex market interventions — moving from weekly auctions to spot sales for commercial banks. According to the Ghana Association of Banks, this policy shift has enhanced market efficiency.

Background

In October 2025, the Bank of Ghana commenced foreign exchange intermediation under the Domestic Gold Purchase Programme, with plans to sell up to $1.15 billion each month.

These sales are conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks.

At an engagement with banks, BoG Governor Dr Johnson Asiama explained that there would be no conditions or earmarking for allocations to ensure a level playing field and transparent market access.

“Monthly auction volumes may be adjusted depending on evolving market conditions, but our overarching objective remains clear: to deepen the interbank FX market, enhance price discovery, and smooth volatility,” he said.

The reforms introduced major changes to how the Bank of Ghana intervenes and sells dollars to commercial banks, with interventions now conducted in a market-neutral manner through twice-weekly open auctions accessible to all licensed banks.