The Bank of Ghana (BoG) is set to increase the amount of foreign exchange supplied to the market under its Forex Intermediation Programme, with plans to auction up to US$1.2 billion in June 2026.
The latest intervention represents an increase from the US$1 billion sold in May and comes at a time when the cedi continues to face pressure against major international currencies.
According to information available to SweetFMOnline, the central bank has informed commercial banks that future monthly auction volumes will be determined by prevailing market conditions.
While it remains unclear whether the increased allocation was directly triggered by recent currency depreciation, the move is expected to provide additional liquidity to the foreign exchange market.
New Framework to Guide FX Operations
In a circular issued to licensed banks, the Bank of Ghana indicated that its interventions will be guided by a newly approved foreign exchange operations framework.
The central bank explained that the framework is designed to support reserve accumulation while ensuring that foreign exchange interventions remain available to curb excessive market volatility when necessary.
The framework also complements the Bank’s foreign exchange intermediation activities under the Domestic Gold Purchase Programme.
BoG noted that all forex sales in May were conducted through twice-weekly spot auctions accessible to all licensed banks and stressed that no direct foreign exchange interventions were undertaken during the period.
The central bank further reaffirmed its commitment to transparency, promising to continue publishing relevant information on its forex market operations.
Data from the Bank of Ghana shows that the cedi has depreciated by 10.91 percent against the US dollar since the beginning of the year.
The central bank attributes much of the pressure to seasonal demand for foreign exchange, particularly from the energy sector amid heightened geopolitical tensions in the Middle East.
Higher global crude oil prices have pushed Ghana’s oil import bill from US$1.6 billion in April 2025 to US$2 billion in April 2026, increasing demand for dollars to finance fuel imports. Demand has also been boosted by multinational companies seeking foreign currency to repatriate dividends during the current payment season.
BoG Assures Market of Adequate Reserves
Despite the recent depreciation, the Bank of Ghana has urged market participants not to panic, maintaining that it possesses sufficient reserves to meet foreign exchange demand.
Gross international reserves stood at approximately US$14.42 billion as of May 2026, providing what analysts describe as a strong buffer against temporary market pressures.
Speaking at the 130th Monetary Policy Committee press briefing, Governor Dr. Johnson Asiama said the current weakness of the cedi is largely seasonal and temporary, adding that the central bank has adequate currency buffers to support stability in the foreign exchange market.
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