Since January 2025, the Bank of Ghana (BoG) has injected around $10 billion into the foreign exchange market to help stabilize the cedi. This sum represents sales to commercial banks and businesses to meet their dollar demands, playing a crucial role in maintaining currency stability.
The intervention, spanning from January through early December 2025, is part of what officials call “dollar intervention.” Sources close to BoG told Joy Business that the move is a broader strategy to satisfy market demand for dollars rather than a program solely aimed at defending the cedi.
Funding for this initiative comes from the Bank of Ghana’s Domestic Gold Purchase Programmed. Rising gold prices have generated windfall gains, which are used to back the dollar auctions without reducing the central bank’s reserves. Officials affirm that these efforts are structured to protect Ghana’s debt obligations and build up reserves.
The gold windfall proceeds are also supporting reserve accumulation and upcoming debt repayments. According to the latest data, Ghana’s international reserves rose from $9.1 billion in December 2024 to $11.4 billion by October 2025, with expectations to surpass $12 billion by year-end. Analysts note that the interventions have not depleted reserves.
Notably, in October alone, the BoG injected $1.15 billion into the FX market under its Intermediation Programmes, operating on a market-neutral, spot basis. This helped drive the cedi’s record appreciation, which grew by 13.9% against the dollar by the end of October and 32.2% year-to-date.
In November, the Bank of Ghana announced a new Foreign Exchange Operations Framework to clarify the principles governing its forex activities. The framework reinforces the commitment to macroeconomic stability, inflation targeting, and a flexible, market-driven exchange rate.
The framework focuses on three goals: accumulating reserves to buffer external shocks, reducing excessive short-term volatility without compromising exchange rate flexibility, and managing FX flows neutrally using gold windfalls or export requirements.
Future interventions will follow a “structured discretion-under-constraint” approach, addressing market failures like the lack of hedging tools without targeting specific exchange rates. The Bank of Ghana emphasizes transparency and communication in its ongoing efforts to stabilize the market.
Story by: Mercy Addai Turkson