As part of the efforts to stabilize the country’s forex market, the Bank of Ghana (BoG) has announced that starting October 2025, it will begin selling up to $1.15 billion through commercial banks to help make foreign exchange (FX) more available.
The BoG says this new drive falls under the Domestic Gold Purchase Programme, a policy that uses Ghana’s gold reserves to support the cedi and strengthen the country’s foreign exchange position. This means the central bank is using gold it buys from local producers to back its dollar sales to ensure that there is enough foreign currency for business transactions.
The new drive was announced by the Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, during a post-MPC engagement with the heads of banks on Tuesday in Accra.
The governor explained that the sales will take place twice a week through price-competitive auctions, where all licensed banks can freely bid for dollars. There will be no special conditions or favoritism, meaning every bank has an equal chance to participate. This move is expected to ensure transparency and fairness.
The governor further explained that the auctions are meant to deepen Ghana’s interbank foreign exchange market, improve price discovery, and reduce sudden swings in exchange rates. In simpler terms, the goal is to make it easier for banks to buy and sell dollars among themselves, so businesses and individuals don’t face sharp jumps in exchange rates when paying for imports or receiving remittances.
The BoG says the $1.15 billion target may change depending on market conditions, but the overall objective remains to make the cedi more stable and predictable.
“Beginning October 2025, the Bank of Ghana will commence foreign exchange (FX) intermediation under the Domestic Gold Purchase Programme, with plans to sell up to US$1.15 billion for the month. These sales will be conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks. Importantly, there will be no conditions or earmarking for allocations, ensuring a level playing field and transparent access to the market” ” the governor announced.
He added, “Monthly auction volumes may be adjusted depending on evolving market conditions, but our overarching objective remains clear, to deepen the interbank FX market, enhance price discovery, and smooth volatility. The Bank of Ghana remains fully committed to transparency, and we will continue to disclose all FX market operations and outcomes in line with best international practice.
This initiative comes weeks after both the International Monetary Fund (IMF) and the World Bank have both cautioned the BoG against excessive intervention on the FX market. The bank was told to reduce its footprint on the market to allow the cedi to find its natural level instead of the artificial strength.
Analysts believe this move will help ease pressure on the cedi, especially during periods of high import demand, while also boosting confidence in the local currency.
For ordinary Ghanaians and businesses, this means that if the auctions succeed, the cedi could stabilize, imported goods may become less expensive, and businesses can plan better without worrying about unpredictable currency fluctuations.
