The Chief Executive Officer of the Ghana Association of Banks (GAB), John Awuah, has revealed that the cedi has recorded some marginal gains on the interbank market following changes to the Bank of Ghana’s Market Intervention and Forex Auction Programme.
He noted that the market has responded positively to the news, resulting in a drop in interbank rates.
Mr Awuah made the disclosure on PM EXPRESS Business Edition with host George Wiafe on October 9, 2025.
According to him, the development indicates that the market is reacting positively to industry reforms.
“The market has already started pricing the expectations of things improving, hence the reduction in rates,” he explained.
The CEO of GAB also attributed the improvement partly to the Bank of Ghana’s decision to review the Net Open Position for commercial banks.
“The development has gone a long way to improve foreign exchange supply for the commercial banks,” he added.
Background
The Governor of the Bank of Ghana, Dr Johnson Asiama, announced that the Central Bank will, from October 2025, commence foreign exchange (FX) intermediation under the Domestic Gold Purchase Programme, with plans to sell up to US$1.15 billion during the month.
These sales will be conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks.
Dr Asiama explained that there will be no conditions or earmarking for allocations in order to ensure a level playing field and transparent market access.
“Monthly auction volumes may be adjusted depending on evolving market conditions, but our overarching objective remains clear: to deepen the interbank FX market, enhance price discovery, and smooth volatility,” he said.
The reforms also introduced major changes to how the Bank of Ghana intervenes and sells dollars to commercial banks.
The central bank was also conducting its interventions in a market-neutral manner through twice-weekly open auctions accessible to all licensed banks.
Impact on the Cedi
Speaking on PM EXPRESS Business Edition, Mr Awuah said the new measures could go a long way to help stabilise the cedi and “enhance market predictability.”
“We believe that if the current development is indeed sustained, the era of volatility will be a thing of the past,” he stated.
He added that businesses depend on exchange rate stability to aid planning, noting that the current trend signals a return to a more predictable environment.
Mr Awuah also confirmed that the supply of dollars has improved significantly, boosting foreign exchange liquidity for banks.
He added that the banks are now able to meet genuine foreign exchange requests from businesses.
“This is due to some monetary measures implemented by the Bank of Ghana over the past months, which have gone a long way to affect market liquidity.” Mr Awuah noted
He further indicated, “We are also hopeful that it will go a long way to deal with activities of persons that want to bet on the outlook of the cedi or, let’s say, speculate as well.”
“We should not forget that a key driver of speculation is a volatile market, and if the Bank of Ghana is working to deal with that, then this should go a long way to help stabilise the cedi,” he noted.
Checks by Joy Business show that interbank rates have moved from nearly GH¢13.00 last week to hover around GH¢ 12.35 – 12.40.
A treasurer with a commercial bank, who spoke to Joy Business on condition of anonymity, confirmed that liquidity in the banking sector had improved significantly by Wednesday, October 8, 2025—even on a day when the Bank of Ghana was not actively supplying dollars.
The gains made by the cedi since last week extend beyond the interbank market, with rates also dropping on the forex market.
For instance, on Monday, October 6, 2025, the cedi was selling at over GH¢13.50 to the dollar; however, today, some forex bureaus were quoting around GH¢13.20.
Some forex operators told Joy Business that dollar supply on the market has improved, while some institutions that had been hoarding foreign exchange are now rushing to sell their holdings to commercial banks and the Bank of Ghana.
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