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The Bank of Ghana (BoG) is set to inject up to $1 billion into the foreign exchange market in November 2025 as part of its revised Foreign Exchange Market Intermediation Programme, a bold move aimed at consolidating the cedi’s strong performance and enhancing transparency in the forex market.
According to a notice issued to licensed commercial banks and sighted by JoyBusiness, the Central Bank will auction about $300 million twice a week in November on a spot basis. The Bank indicated that the total monthly injection volume beyond November would be determined by prevailing market conditions.
“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,” the notice read.
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In October, the BoG injected $1.15 billion under the same programme, conducting the auctions in what it described as a market-neutral and price-competitive manner. Market analysts credit these interventions as a key driver of the cedi’s remarkable rally last month.
Official data from the BoG shows that the cedi appreciated by 13.9% against the US dollar in October, with a year-to-date gain of 34.86%—its strongest performance in years.
Average daily trading volumes on the interbank market hit $22 million, bringing the total monthly volume to about $484 million.
Commercial banks and market observers have attributed the cedi’s rally to the Central Bank’s revised forex and monetary policy framework, which has improved dollar liquidity and tightened regulatory compliance in the forex market.
A major policy shift under the revised programme involves moving from weekly dollar auctions to twice-weekly spot sales for licensed commercial banks. According to the Ghana Association of Banks, this change has enhanced market efficiency and price discovery.
In addition, the BoG has been conducting foreign exchange intermediation under the Domestic Gold Purchase Programme, which allows it to sell up to $1.15 billion monthly through spot-based, competitive auctions open to all banks.
At a recent engagement with commercial banks, BoG Governor Dr Johnson Asiama clarified that there would be no conditions or preferential allocations, ensuring a level playing field for all participants.
“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,” Dr Asiama said.
Economists say the bank’s aggressive forex interventions, coupled with gold-backed reserves and improved transparency, could further stabilise the cedi, bolster investor confidence, and reduce speculative pressures in the months ahead.
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