The Bank of Ghana is preparing to inject up to $1 billion into the foreign exchange market this November under its FX Market Intermediation Programme.
According to a notice sent to licensed commercial banks, the Central Bank will auction about $300 million twice a week on a spot basis. The total volume for subsequent months will depend on market conditions.
The BoG emphasized its commitment to transparency and fairness in forex operations, assuring that all details on intermediation and interventions will remain publicly available.
In October, the Bank injected $1.15 billion into the market through similar interventions. The move, carried out in what officials described as a “market-neutral manner,” was linked to the cedi’s strong performance during the month.
Market analysts say the intervention contributed to the 13.9% appreciation of the cedi against the dollar in October and a 34.86% gain year-to-date.
Average daily interbank trading reached $22 million, bringing total monthly volume to $484 million. Commercial banks have credited the cedi’s rally to improved dollar supply and tighter forex regulation enforcement.
“Our objective is to deepen the interbank FX market, enhance price discovery, and smooth volatility,” BoG Governor Dr. Johnson Asiama stated.
“Auction volumes may adjust as conditions evolve, but transparency remains our guiding principle,” he added.
The new auction system, part of broader forex reforms, replaces weekly sales with twice-weekly spot auctions. The change aims to improve liquidity and ensure equal access for all licensed banks under the BoG’s ongoing efforts to strengthen the Domestic Gold Purchase Programme and stabilize the cedi.
