The Bank of Ghana (BoG) has injected roughly $10 billion into the foreign exchange market from January to early December 2025 as part of its efforts to stabilise the cedi and support FX liquidity.
This injection represents the total amount of dollars supplied to banks and businesses to meet their foreign exchange needs. Sources within the central bank explain that the move is intended to satisfy market demand rather than simply defend the value of the currency.
A significant portion of the funds used for these interventions comes from the BoG’s Domestic Gold Purchase Programme, which has benefited from the surge in global gold prices. The resulting gains have enabled the Bank to auction dollars without tapping into its international reserves.
According to officials, the gold revenues have been allocated toward reserve accumulation, upcoming debt obligations, and targeted foreign exchange support for the market.
BoG figures indicate that Ghana’s international reserves rose from $9.1 billion in December 2024 to $11.4 billion by October 2025. Projections show that reserves are on track to exceed $12 billion by year-end, demonstrating that the interventions have not depleted the country's reserve levels.
In October alone, the central bank supplied $1.15 billion to the market through its FX Intermediation Programme using market-neutral spot auctions. Analysts credit these actions for the cedi’s strong performance during the month.
By the end of October 2025, the cedi had appreciated 13.9% against the dollar and 32.2% since the beginning of the year.
Last month, the BoG Board approved a new Foreign Exchange Operations Framework designed to clearly define the objectives guiding its FX activities. The framework aligns with the Bank’s inflation-targeting policy and the country’s flexible exchange rate system. Its key goals are to:
- Strengthen reserve buffers to protect the economy from external pressures.
- Moderate excessive short-term volatility by addressing disorderly market conditions without attempting to fix the exchange rate.
- Manage FX inflows neutrally, particularly those from the Gold Purchase Programme and export surrender requirements.
Under the new approach, the Bank will continue to inject forex in a transparent and orderly manner, focusing on correcting market inefficiencies rather than influencing the exchange rate’s direction.
The BoG emphasised that future interventions will be guided by a “structured discretion-under-constraint” strategy to ensure clarity, transparency, and stability in its operations.
“Reserve accumulation and FX intermediation will be executed through open and well-communicated processes,” the Bank reiterated.
Source: Theghanareport
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