Bank of Ghana (BoG) is scaling back its Foreign Exchange Intermediation Programme under the revised Domestic Gold Purchase initiative.
Joy Business data shows the Central Bank plans to sell up to $800 million on the market for December 2025. About $100 million was auctioned on December 2, with another $100 million on December 4.
In a “wire” communication to market participants, seen by JoyBusiness, the Bank indicated that the December auction volume has reduced marginally compared to September, October and November 2025.
According to the Bank of Ghana, the decision was influenced by what it describes as a reduction in FX demand during the festive period, when market activity slows, and FX requirements ease.
The Bank also assured the market that subsequent monthly volumes will be determined by prevailing conditions.
According to the Central Bank, the auctions are being carried out under its recently approved FX Operations Framework, guided by the objective of reserve accumulation.
These sales will be conducted in what the Bank describes as a market-neutral manner and on a spot basis, through twice-weekly auctions open to all licensed banks.
Background
The Bank of Ghana, in September, commenced its revised FX Intermediation Programme. JOYBUSINESS understands that $1.1 billion was auctioned that month.
The amount increased to $1.3 billion in October 2025.
In November 2025, the Bank announced a target of $1 billion and sold that exact amount.
For December 2025, the target has been reduced to $800 million.
The auctions continue to be conducted on a spot basis through twice-weekly, price-competitive sales open to all licensed banks.
Market watchers believe these interventions contributed significantly to the cedi’s record performance in 2025.
Cedi’s Performance and Trade Volumes
Bank of Ghana data shows the cedi has appreciated 31% year-to-date against the dollar.
This is a marginal slowdown from the 34.86% appreciation recorded in October 2025.
As of December 10, 2025, the local currency is trading at GH¢11.42 to the dollar.
In November 2025, average daily trading volume on the interbank FX market was around $5.5 million, contributing to a total monthly volume of $111.11 million.
Revised FX Framework
In November, the Bank of Ghana announced that its Board had approved a new Foreign Exchange Operations Framework to clarify the objectives and principles guiding its FX operations.
According to the regulator, the framework reinforces its commitment to macroeconomic stability under the inflation-targeting regime and a flexible, market-driven exchange rate system.
The framework is expected to deliver three core objectives:
- Support reserve accumulation to provide a buffer against external vulnerabilities.
- Reduce excessive short-term volatility in the FX market by addressing disorderly conditions without undermining exchange-rate flexibility.
- Intermediate FX flows in a market-neutral manner, using inflows from the Gold Purchase Programme or export surrender requirements.
This means the Bank of Ghana will channel FX inflows into the market in an orderly, transparent, and non-directional manner.
The Bank says future interventions will follow a “structured discretion-under-constraint” approach. This ensures interventions do not target specific exchange-rate levels but instead address market failures, including the absence of hedging tools.
“Reserve accumulation and intermediation objectives will be achieved through transparent and well-communicated operations,” the Bank noted in its recent statement.
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