BoG to Inject Up to $1 Billion into Forex Market as Cedi Faces Fresh Pressure

The Bank of Ghana (BoG) is set to inject up to $1 billion into the foreign exchange market in August 2026 as part of efforts to stabilise the Ghana cedi amid renewed pressure from rising demand for US dollars.

The intervention will be carried out under the Bank’s Forex Intermediation Programme, with auctions scheduled every two weeks and open to all licensed commercial banks. The initiative forms part of the central bank’s broader Foreign Exchange Operations Framework, aimed at reducing excessive volatility in the forex market while supporting Ghana’s reserve accumulation strategy.

According to information gathered by Joy Business, the move comes at a time when businesses are demanding more foreign currency than the market can currently supply, placing fresh pressure on the cedi.

Industry players say the increased demand is being driven largely by energy sector companies seeking dollars to finance crude oil imports, purchase petroleum products, and settle payments to power producers. Others point to a temporary shortage of foreign exchange relative to business needs.

Despite the pressure, the Bank of Ghana has assured businesses and market participants that there is no cause for alarm, describing the current situation as a temporary market adjustment. The central bank says it remains ready to support the market whenever necessary to ensure the smooth financing of critical imports.

Recent BoG figures show Ghana’s international reserves have declined slightly to just over $12 billion. However, officials insist the country still has sufficient buffers to maintain stability in the foreign exchange market.

The August intervention follows a similar support programme in July, during which the central bank conducted market-neutral dollar auctions without directly intervening in the market. At the end of July 2026, the cedi had recorded a cumulative depreciation of 10.61%, while average daily interbank forex trading stood at $22.64 million, amounting to a monthly volume of $498 million.

The Forex Intermediation Programme, which was revised in September 2025, has become one of the Bank’s key tools for managing exchange rate volatility. The programme began with a $1.1 billion auction, increased to $1.3 billion in October 2025, before settling at $1 billion in November and $800 million in December that year.

In June 2026, the Bank injected $2.01 billion into the market, including $1.2 billion through the Forex Intermediation Programme, after commercial banks submitted bids worth $3.42 billion, highlighting the strong demand for foreign currency.

The Bank of Ghana has reaffirmed its commitment to transparency, stating that it will continue to publish information on its foreign exchange operations while taking measures to maintain stability in the cedi and the broader economy.