Ghana’s cedi is now showing signs of a stronger anchor, as recent measures by the Bank of Ghana (BoG) and rising international reserves are expected to provide greater stability and reduce volatility in the currency.
Starting this month, the BoG launched foreign exchange sales of up to US$1.15 billion under its Domestic Gold Purchase Programme (DGPP).
Dollars are to be sold through twice-weekly, transparent auctions open to all licensed banks, with no special conditions. The initiative is aimed at deepening the interbank FX market, improving price discovery, and smoothing sharp swings in the cedi, giving market participants a more predictable environment.
Under the DGPP, the BoG buys gold from domestic miners, converts it into dollars, and sells those dollars to commercial banks. This ensures that banks have sufficient dollars to meet demand from importers and businesses, reducing pressure on the cedi and limiting black-market activity.
With gold prices reaching higher levels of over $4000 this month, the programme could generate more foreign currency, further strengthening BoG’s reserves. These measures together would provide the cedi with a clear anchor for stability, giving investors and businesses confidence in the currency.
The programme is reinforced by Ghana’s strong gold and cocoa exports and a healthy current account surplus, factors that continue to underpin reserves and support market confidence. These combined measures are likely to create a more predictable and resilient environment, reinforcing the currency’s stability.
The International Monetary Fund (IMF) also noted that Ghana has consistently exceeded targets for international reserves accumulation under the Extended Credit Facility program.
The Fund highlighted that the cedi’s appreciation earlier this year reflects macro-stabilization, falling inflation, and improved investor confidence.
With recent monetary policy easing, including a 650-basis-point cut in the policy rate to 21.5%, and structured FX interventions like the DGPP, the IMF expects the positive momentum to continue into 2026, supporting both economic growth and currency stability.
All these measures are likely to further strengthen and anchor the cedi, giving investors and businesses greater confidence in the currency’s stability.
