The Bank of Ghana (BoG) is preparing another major intervention in the foreign exchange market by making up to $1 billion available through its Forex Intermediation Programme in August 2026.
The move comes at a time when the Ghana cedi is facing renewed pressure from rising demand for US dollars, raising concerns among businesses and market participants over the availability of foreign exchange.
The planned auctions are expected to provide much needed liquidity to licensed commercial banks while helping to stabilise the foreign exchange market. The central bank believes the programme will ease short term volatility, support critical imports and reinforce confidence in the local currency.
The latest announcement highlights the Bank of Ghana’s determination to prevent excessive exchange rate fluctuations while maintaining orderly market conditions.
Dollar demand outpaces supply
Pressure on the cedi has intensified in recent weeks as businesses across various sectors seek more dollars to finance imports and meet international payment obligations.
According to market information, commercial banks have reported that requests for foreign exchange have exceeded available supply in parts of the market. This imbalance has contributed to renewed depreciation pressures on the cedi after months of relative stability.
Industry observers point to increasing demand from energy sector players as one of the key factors driving the shortage. Companies involved in crude oil imports, finished petroleum products and payments to independent power producers require substantial amounts of foreign currency, placing additional strain on the market.
Others argue that the challenge reflects a broader mismatch between the supply of dollars and growing business demand as economic activity continues to recover.
BoG activates Forex Intermediation Programme
To address these concerns, the Bank of Ghana will conduct dollar auctions every two weeks under its Foreign Exchange Operations Framework.
The auctions will be accessible to licensed commercial banks through a transparent and competitive process designed to ensure fair allocation of foreign exchange.
According to the central bank, the initiative forms part of efforts to operationalise its Foreign Exchange Operations Framework while supporting the objectives of its reserve accumulation programme.
The Forex Intermediation Programme also plays an important role in reducing excessive volatility in the foreign exchange market, particularly when market conditions become unstable.
Officials believe the programme complements activities under the Domestic Gold Purchase Programme, which has become an important source of foreign exchange support for Ghana.
BoG urges businesses to remain calm
Despite the renewed pressure on the cedi, the Bank of Ghana has sought to reassure businesses and investors that there is no cause for panic.
Although international reserves have declined to slightly above $12 billion, officials insist the country still maintains sufficient capacity to support the market whenever necessary.
The central bank has described the current situation as temporary market movements rather than a structural crisis.
It has also pledged to ensure that businesses requiring foreign exchange for essential imports will continue to receive support, helping to minimise disruptions to economic activity.
This reassurance is intended to discourage panic buying of dollars, which could further increase pressure on the exchange rate.
July operations laid the foundation
The August programme follows similar foreign exchange operations conducted in July 2026.
During those operations, the Bank of Ghana informed commercial banks that its activities were carried out on a market neutral basis using spot transactions through twice weekly open auctions.
The central bank maintained that there was no direct intervention in the market during July, despite providing liquidity through the established auction mechanism.
Data released by the Bank showed that the cedi had recorded a cumulative depreciation of 10.61 percent by the end of July.
Average daily trading volume in the interbank foreign exchange market reached $22.64 million, resulting in total monthly transactions of approximately $498 million.
The Bank has pledged to continue publishing relevant information on its foreign exchange operations in order to strengthen transparency and improve confidence among market participants.
Strong history of market support
The Forex Intermediation Programme has become one of the Bank of Ghana’s most significant policy tools for managing foreign exchange liquidity.
The revised programme was introduced in September 2025 with an initial target of $1.1 billion. This increased to $1.3 billion in October before settling at $1 billion in November, when the full amount was successfully sold to participating banks.
In December 2025, the target was lowered to $800 million as market conditions improved.
Analysts have widely credited the programme with supporting the cedi’s impressive performance throughout much of 2025 by improving market liquidity and reducing uncertainty.
The Bank intensified its support in June 2026 by injecting $2.01 billion into the foreign exchange market. Out of that amount, $1.2 billion was supplied through the Forex Intermediation Programme.
Commercial banks submitted bids worth $3.42 billion during the June auctions, highlighting the enormous appetite for foreign currency within the financial system.
The allocation was subsequently reduced to $1 billion in July and remains unchanged for August.
Market watches cedi’s next move
Financial markets will closely monitor the effectiveness of the August auctions as businesses continue to seek greater access to foreign exchange.
If demand remains elevated, the Bank of Ghana could face renewed pressure to sustain or even increase future interventions to maintain market stability.
For businesses, importers and investors, the coming weeks will be crucial in determining whether the planned $1 billion auctions can restore confidence and ease pressure on the cedi.
With global economic uncertainties, rising import requirements and continued demand for dollars, the central bank’s latest action represents one of its strongest signals yet that it remains committed to defending stability in Ghana’s foreign exchange market while ensuring the economy continues to function without major disruptions.
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