Bank of Ghana to Inject Up to $1bn into FX Market This January
The Bank of Ghana (BoG) has announced plans to sell up to US$1 billion to the market and businesses in January 2026 under its Foreign Exchange (FX) Intermediation Programme, as part of efforts to stabilise the foreign exchange market and support reserve accumulation.
The plan is contained in a communication to market operators, with the central bank indicating that the auctions will be conducted in line with its recently approved Foreign Exchange Operations Framework.
According to the BoG, the January sales mark the operationalisation of measures outlined in the new FX Operations Framework and will be aligned with the objectives of its reserve accumulation programme. The central bank explained that the FX intermediation initiative is intended to help curb excessive volatility in the foreign exchange market when necessary, particularly in the context of the Domestic Gold Purchase Programme.
In November 2025, the BoG announced that its Board had approved the new Foreign Exchange Operations Framework to clearly define the objectives and guiding principles of its FX operations. The regulator noted that the framework reinforces its commitment to macroeconomic stability under the inflation-targeting regime, while maintaining a flexible, market-determined exchange rate system.
The framework is anchored on three key objectives: supporting reserve accumulation to provide buffers against external shocks; reducing excessive short-term volatility in the FX market without compromising exchange rate flexibility; and intermediating FX flows in a market-neutral manner using inflows from the Gold Purchase Programme or export surrender requirements. As a result, the BoG will channel FX inflows into the market in an orderly, transparent and non-directional manner.
The central bank added that the volumes for subsequent months will be determined by prevailing market conditions. It also reiterated its commitment to transparency, assuring market participants that it will continue to disclose all relevant information on its foreign exchange market activities, including FX intermediation operations.
December 2025 FX Intermediation
For December 2025, the Bank of Ghana disclosed that it had planned to sell up to US$800 million under the FX Intermediation Programme but eventually sold US$721 million. The central bank explained that the sales were executed in a market-neutral manner on a short-term basis through twice-weekly open auctions accessible to all licensed banks.
Background to the programme
The revised FX Intermediation Programme began in September 2025, when about US$1.1 billion was auctioned. This amount rose to US$1.3 billion in October 2025. In November 2025, the central bank set a target of US$1 billion and sold the entire amount, before reducing the December target to US$800 million.
The auctions continue to be conducted on a spot basis through twice-weekly, price-competitive sales open to all licensed banks. Market analysts believe the programme played a significant role in supporting the cedi’s strong performance in 2025.
Cedi performance
According to the Bank of Ghana, the cedi recorded a cumulative year-to-date appreciation of 40.67% against the US dollar in 2025, strengthening to about GH¢10.45 to the dollar. In December, average daily trading volumes on the interbank market stood at US$19.70 million, contributing to a total monthly volume of approximately US$394 million.
Attention is now turning to the central bank’s FX strategy for the first quarter of 2026, a period that traditionally sees increased pressure on the cedi due to higher import demand and dividend payments by listed companies to foreign shareholders.
