BoG Rolls Out Fresh FX Rules to Keep the Cedi Stable
The Bank of Ghana (BoG) has announced a new Foreign Exchange (FX) Operations Framework, aimed at improving clarity, transparency, and discipline in the management of the country’s foreign exchange market.
According to a statement from the central bank, the framework outlines the objectives and principles guiding its FX operations, reinforcing BoG’s commitment to macroeconomic stability under its inflation-targeting regime and flexible exchange rate system.
The new framework, approved by the Bank’s Board, pursues three key objectives — supporting reserve accumulation to cushion the cedi against external shocks, reducing excessive short-term volatility in the FX market, and ensuring neutral intermediation of foreign exchange flows without influencing the direction of the cedi.
Under the structure, the central bank will conduct FX operations through competitive, variable-rate, fixed-amount auctions. Auction amounts will be pre-announced, with results published the same day to promote transparency and market confidence.
The BoG will also publish monthly aggregated FX operations data within five business days after each month, distinguishing between different operational objectives to enable the public and market participants to better interpret its actions.
“This new FX Operations Framework reflects our commitment to transparency, market confidence, and macroeconomic stability,” the Bank said, adding that the reforms are expected to enhance resilience while preserving the flexibility of Ghana’s exchange rate regime.
