Dollar demand has surged in recent days as Ghanaian businesses are restocked for the year ahead. Commercial banks’ bids at the Bank of Ghana’s foreign exchange auctions in early January 2026 reflect this trend, with data from JoyBusiness showing strong interest from manufacturing and energy sectors.
At last Thursday’s auction, the central bank offered $125 million within a band of GH¢10.70 to GH¢10.71, but total bids hit $366 million.
Market Pressures Build
Analysts point to thin foreign exchange supply as the driver, predicting ongoing pressure as companies resume post-holiday operations. Some foresee sustained high demand from firms paying dividends to overseas shareholders.
JoyBusiness checks revealed $7 million traded on the interbank market last week at GH¢10.71 to GH¢10.72. This has led to a year-to-date cedi depreciation of about 1.63% against the dollar, fueled by persistent demand.
Q1 Challenges and BoG’s Reassurance
The cedi often weakens in the first quarter due to import restocking and foreign dividend payouts. Yet the Bank of Ghana insists there’s no panic needed, with ample reserves and proactive measures in place.
Gross international reserves stood at $13.8 billion at the end of 2025. The central bank is monitoring closely and is ready to intervene via its foreign exchange intermediation program.
FX Intermediation Program Details
In December 2025, the Bank of Ghana pledged up to $1 billion in January auctions under this program, guided by its new Foreign Exchange Operations Framework approved in November. The framework supports macroeconomic stability, inflation targeting, and a flexible exchange rate while aiding reserve buildup and the Domestic Gold Purchase Programme.
2025 Cedi Strength Sets Stage
The cedi appreciated 40.67% against the dollar in 2025, closing at GH¢10.45. December saw average daily interbank volumes of $19.7 million, totalling $394 million for the month.
All eyes are now on the central bank’s Q1 2026 strategy to counter typical seasonal pressures from imports and dividends.
Story by: Mercy Addai Turkson #ahotoronline.com