The Bank of Ghana (BoG) has announced plans to inject up to $1 billion into the forex market this November under its revised Foreign Exchange Market Intermediation Programme, as part of efforts to sustain the cedi’s recent recovery and deepen liquidity across the interbank market.
According to a notice seen by JoyBusiness, the central bank intends to auction approximately $300 million twice a week to licensed commercial banks on a spot basis throughout November. The Bank indicated that subsequent monthly volumes will be determined by prevailing market conditions.
In a statement, the BoG reaffirmed its commitment to transparency and consistency, pledging to continue disclosing relevant information regarding its foreign exchange operations and interventions.
October’s Market Impact
In October, the BoG injected around $1.15 billion through its FX Intermediation Programme, conducting the sales on a market-neutral, spot basis. Market analysts attribute this intervention to the cedi’s 13.9% appreciation against the US dollar in October alone, bringing its year-to-date gains to 34.86%, according to official data.
Average daily trading volumes on the interbank market reached $22 million, totaling roughly $484 million for the month. Commercial banks have credited the cedi’s strong performance to a combination of new forex and monetary policy measures, including stricter enforcement of FX regulations and improved dollar supply.
A major policy change has been the BoG’s shift from weekly auctions to spot sales for commercial banks, a move the Ghana Association of Banks says has enhanced price discovery and market efficiency.
