The Bank of Ghana (BoG) is significantly increasing its foreign exchange market support for June 2026, allocating up to $1.2 billion through its Forex Intermediation Programme to counter renewed pressure on the Ghanaian Cedi. This move represents a substantial boost from the $1 billion provided in May and signals the central bank’s proactive stance in managing currency volatility.
Context of Forex Operations
This enhanced intervention comes as the BoG implements a newly approved foreign exchange operations framework. This framework guides the central bank’s actions, balancing the need to build foreign exchange reserves with the imperative to intervene and mitigate excessive market volatility when necessary.
The framework also integrates support for foreign exchange intermediation under the Domestic Gold Purchase Programme. This suggests a multi-faceted approach to managing the nation’s foreign currency resources.
Cedi’s Performance and Contributing Factors
Recent data from the Bank of Ghana indicates that the cedi has depreciated by 10.91% against the US dollar year-to-date. This performance stands in stark contrast to the same period last year, when the cedi had appreciated by over 20%.
The central bank attributes the current weakness primarily to seasonal factors. These include heightened demand for foreign exchange by the energy sector, exacerbated by rising global crude oil prices. This has led to an increase in Ghana’s import bill, consequently driving up the demand for dollars to finance fuel imports.
Data from the BoG’s May 2026 Summary of Economic and Financial Data reveals a rise in Ghana’s oil import bill, climbing from $1.6 billion in April 2025 to $2 billion in April 2026. Additionally, increased dividend payments by multinational companies, requiring foreign exchange to repatriate profits, are contributing to dollar demand.
Central Bank’s Assurance and Reserve Levels
Despite the pressures, the Bank of Ghana has moved to reassure market participants, stating that it possesses sufficient reserves to meet seasonal foreign exchange demands. As of May 2026, Ghana’s gross international reserves stood at approximately $14.42 billion.
Market analysts view these reserves as a robust buffer, capable of satisfying forex demand without unduly straining the central bank’s holdings. Governor Dr. Johnson Asiama, speaking at the 130th Monetary Policy Committee press briefing, emphasized the bank’s adequate currency buffers, characterizing the current pressures on the cedi as temporary.
Transparency in Forex Interventions
The BoG detailed its May operations, noting that all forex sales were conducted in a market-neutral manner on a spot basis through twice-weekly auctions open to all licensed banks. It stressed that no direct foreign exchange interventions occurred in May 2026.
The central bank has reiterated its commitment to transparency, pledging to continue disclosing relevant information regarding its foreign exchange market activities, including its FX intermediation operations.
Implications and Future Outlook
The increased forex support signals the Bank of Ghana’s determination to stabilize the cedi and maintain confidence in the Ghanaian economy. For businesses and consumers, this could translate to more predictable exchange rates, aiding in financial planning and reducing the cost of imported goods.
The effectiveness of this strategy will depend on the sustained implementation of the new forex operations framework and the evolution of global economic conditions, particularly oil prices and international investor sentiment. Market participants will be closely watching future monthly auction volumes, which the BoG has stated will be determined by prevailing market conditions, to gauge the ongoing management of the cedi.
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