After Pumping $8bn into FX Market, Cedi Should be GHS 8/$1 not Almost GHS 11/$1 – Former Finance Minister
Former Minister for Finance, Dr Amin Adam, has claimed that the Bank of Ghana (BoG) has intervened in the foreign exchange market with about $8 billion since the beginning of the year, arguing that the cedi’s current performance does not reflect the scale of support provided.
Addressing the press on Friday, November 2025, Dr Adam said that with interventions of such magnitude, the cedi should be trading around GHS 8 to $1, rather than the current GHS 10.94 to $1.
He linked the heavy FX interventions to the removal of the $80 million cap on market support – a ceiling introduced by the lMF under the previous NPP administration – which was scrapped in December 2024. According to him, this policy shift allowed the central bank to inject larger volumes of dollars into the market.
Dr Adam argued that the cedi’s relative stability this year has been driven almost entirely by BoG’s aggressive interventions rather than underlying market fundamentals.
He cautioned, however, that currency strength “cannot be bought,” emphasising that lasting stability must come from structural reforms and sustainable foreign exchange inflows.
BoG announces new FX Operations Framework to enhance transparency
Meanwhile, the Bank of Ghana has introduced a new Foreign Exchange (FX) Operations Framework aimed at strengthening transparency, confidence, and discipline in the management of Ghana’s foreign exchange market.
According to a statement issued by the Bank, the updated framework aligns with its inflation-targeting mandate and flexible exchange rate regime, outlining the principles that will guide FX operations going forward.
The framework focuses on three core objectives:
Supporting reserve accumulation to provide a buffer against external shocks.
Reducing excessive short-term volatility in the foreign exchange market.
Ensuring neutral intermediation of FX flows, without influencing the direction of the exchange rate.
Under the new structure, the BoG will conduct FX operations through competitive, variable-rate, fixed-amount auctions, with auction sizes announced in advance. Results will be published the same day to foster openness and boost market confidence.
The central bank will also begin publishing monthly aggregated FX operations data within five business days after each month. The data will be categorised by operational objective, a move expected to help market participants and the public better understand the Bank’s interventions and policy intentions.
The BoG says the enhanced framework is part of efforts to anchor expectations, improve FX market functioning, and reinforce macroeconomic stability.
