The Bank of Ghana (BoG) has introduced a new Foreign Exchange (FX) Operations Framework aimed at improving transparency, strengthening market confidence, and suppnorting macroeconomic stability, according to a statement from the central bank.
The framework outlines three main objectives: build foreign reserves to protect against external shocks, moderate excessive short-term volatility in the FX market, and channel FX inflows in a market-neutral and transparent way.
These inflows include proceeds from programs such as the Gold Purchase Programme and other export-related requirements.
Under the new rules, BoG will maintain a flexible, market-determined exchange rate, intervening only to address disorderly conditions or gaps, such as the absence of hedging mechanisms for extreme market risks.
FX operations will be conducted through competitive, variable-rate, fixed-amount auctions, with auction amounts and results announced publicly.
Twice-weekly operations for market intermediation will be pre-announced at the start of each month, while interventions to smooth short-term volatility will be announced on the same day or a day in advance. Monthly aggregated data will also be published, showing the purpose of each intervention.
“This framework reflects our commitment to transparency and market resilience while preserving the flexibility of Ghana’s exchange rate regime,” the BoG said in the statement.
The new FX framework comes as part of BoG’s ongoing efforts to strengthen Ghana’s financial stability while ensuring businesses and investors can rely on a predictable, well-communicated approach to foreign currency management.
