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Ghana’s central bank to inject $1bn in forex market to bolster cedi

The busy street of Kwame Nkrumah Circle, Accra, Ghana @ Pixabay
The busy street of Kwame Nkrumah Circle, Accra, Ghana @ Pixabay
  • Central bank to inject $1bn into Ghana’s forex market in November
  • Move aims to sustain cedi rally, deepen interbank FX market

 

ACCRA, GHANA – The Bank of Ghana will inject up to $1 billion into the domestic foreign exchange market in November to stabilise the cedi and boost liquidity under its revised Foreign Exchange Market Intermediation Programme.

The Central Bank said in a notice to dealers that it would auction about $300 million twice weekly to licensed commercial banks on a spot basis – effectively selling up to $600 million each week. The total monthly volume will depend on market conditions, reflecting a flexible and responsive approach.

The initiative continues the BoG’s aggressive foreign exchange reforms. In October 2025, it supplied $1.15 billion through the same programme, launched as part of the Domestic Gold Purchase Programme.

Governor Dr Johnson Asiama said the shift to spot sales via open auctions ensures there are “no conditions or earmarking for allocations.” He explained that the market-neutral system enhances efficiency and promotes price discovery, with the Ghana Association of Banks hailing it as a key step toward deepening the interbank market.

The Central Bank’s structured and transparent auction regime – replacing ad-hoc interventions – has been credited with strengthening the cedi. The currency appreciated 13.9 % against the dollar in October 2025 and 34.86 % year-to-date, driven by improved dollar supply and rising investor confidence.

“Predictable and structured dollar supply reduces exchange rate volatility,” the BoG said, noting that transparency “sends a positive signal to investors” and could attract more foreign direct and portfolio inflows.

Deepening the interbank market

The Bank’s twice-weekly auctions aim to “deepen the interbank FX market” and smooth volatility. Average daily trading volumes of $22 million in October contributed to a monthly total of $484 million, and analysts expect that figure to rise further under the expanded liquidity support.

By maintaining consistency and openness in its foreign exchange operations, the BoG hopes to build market resilience and confidence in Ghana’s financial system.

“The Bank remains firmly committed to transparency in its operations and will continue to disclose all relevant information regarding its foreign exchange activities,” it said.

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