Bank of Ghana to inject $1bn into forex market as cedi comes under pressure

The Bank of Ghana says it will inject up to $1bn into the foreign exchange market this month as it seeks to ease growing demand for US dollars and stabilise the Ghana cedi.

The funds will be released through the central bank's Forex Intermediation Programme, with auctions expected to take place every two weeks and be open to licensed commercial banks.

The move comes after the cedi showed signs of renewed weakness, with businesses reporting difficulties accessing enough dollars to meet import and other foreign exchange needs.

According to information obtained by JoyBusiness, the Bank of Ghana has told market participants that the auctions form part of its foreign exchange operations framework and are intended to support both market stability and its reserve accumulation programme.

The central bank says the programme is designed to reduce excessive volatility in the foreign exchange market, particularly during periods of heightened demand.

Why is the cedi under pressure?

Demand for dollars has recently outstripped supply in parts of the market, according to data gathered from commercial banks.

Some market participants say the increase has been driven by energy companies purchasing foreign currency to pay for crude oil imports, refined petroleum products and electricity generation.

Others point to a shortage of available dollars relative to growing demand from businesses.

The latest pressure comes as Ghana's international reserves have fallen to just over $12bn, according to recent

Bank of Ghana data.

Despite this, the central bank has sought to reassure businesses that the recent depreciation reflects temporary market conditions rather than a fundamental shortage of foreign exchange.

Officials say the Bank remains ready to support the market when necessary to ensure essential imports are not disrupted.

Following July's operations

The August programme follows a similar round of foreign exchange auctions in July, when the Bank of Ghana said

it supported the market through twice-weekly, price-competitive sales without directly intervening in exchange rate movements.

The central bank said the cedi had recorded a cumulative depreciation of 10.61% by the end of July, while average daily trading on the interbank foreign exchange market reached $22.64m, with monthly trading volumes totalling $498m.

The Bank has also pledged to continue publishing information on its foreign exchange operations to improve transparency.

A key tool to support the currency

The Forex Intermediation Programme was introduced in its revised form in September 2025 with an initial $1.1bn auction.

The programme expanded to $1.3bn in October before returning to $1bn in November. The target was later reduced to $800m in December.

In June this year, the central bank supplied $2.01bn to the foreign exchange market, including $1.2bn through the Forex Intermediation Programme, after banks submitted bids worth $3.42bn, highlighting strong demand for US dollars.

The July allocation was reduced to $1bn, a level the Bank has now maintained for August as it seeks to cushion the cedi against fresh market pressures.