The Bank of Ghana (BoG) has introduced a new Foreign Exchange Operations Framework to support a market-determined exchange rate and reduce excessive volatility.
A press release copied to the Ghana News Agency said the framework, approved by the BoG Board, outlines the objectives and principles guiding the central bank’s operations in the foreign exchange market.
The release said the BoG would pursue three key objectives: accumulating foreign reserves as a buffer against external shocks, dampening excessive short-term volatility, and intermediating foreign exchange flows in a market-neutral manner.
The central bank stated that its interventions would not target a specific exchange rate level but would address market failures.
The move follows concerns from international partners, including the World Bank, over the extent of BoG’s interventions in the forex market.
Financial institutions have also raised concerns that such actions could distort market pricing and affect the cedi’s valuation.
To address these concerns, the BoG said it would prioritise transparency by pre-announcing auction amounts, publishing results on the same day, and releasing detailed monthly data within five business days.
The announcement comes after a period of heightened activity, with BoG data showing that $1.15 billion was auctioned in October 2025.
Under the new framework, the BoG will channel foreign exchange from sources such as the Gold Purchase Programme through competitive, variable-rate auctions held twice weekly, with schedules published monthly.
The Bank said the framework is intended to boost market confidence and maintain the flexibility of Ghana’s exchange rate regime.
GNA
