The Bank of Ghana (BoG) has injected about $10 billion into the foreign exchange market since January 2025 to support the stability of the cedi.
The interventions, carried out through dollar sales to commercial banks and businesses, have helped meet demand for dollars and contributed to the currency’s relative stability over the year. Officials stress that the programme is market-supportive rather than a defence mechanism targeting a specific exchange rate.
Funding from Gold Windfall
The funding for these interventions has been drawn from the Bank of Ghana’s Domestic Gold Purchase Programme, which has generated significant gains from rising gold prices. Portions of the proceeds have also been channelled to reserve accumulation and upcoming debt repayments, ensuring that the interventions did not deplete the country’s reserves.
As of December 2024, Ghana’s international reserves stood at $9.1 billion, rising to $11.4 billion by October 2025, with projections suggesting the year could close above $12 billion.
Market Impact
In October alone, the BoG injected $1.15 billion under its FX Intermediation Programme, conducted on a market-neutral, spot basis. Analysts credit such interventions for the cedi’s record appreciation, which had risen 13.9% against the dollar by the end of October 2025, and 32.2% year-to-date.
New FX Operations Framework
In November 2025, the BoG announced a new Foreign Exchange Operations Framework, aimed at providing clarity on its objectives and guiding principles. The framework focuses on:
- Supporting reserve accumulation to buffer against external shocks.
- Reducing short-term FX volatility by addressing disorderly market conditions without undermining exchange rate flexibility.
- Market-neutral FX intermediation using inflows from the Gold Purchase Programme or export surrender requirements.
The framework emphasises a “structured discretion-under-constraint” approach, ensuring interventions address market gaps—such as the absence of hedging tools—without targeting specific exchange rate levels.
The Bank of Ghana confirmed that future operations would continue to prioritise transparency and macroeconomic stability, under the country’s inflation-targeting regime and flexible, market-driven exchange rate system.
