Dollar demand has picked up in recent days as businesses move to restock for the rest of the year.
This trend is reflected in bids submitted by commercial banks on behalf of businesses at the Bank of Ghana’s foreign exchange auctions held in the first and second weeks of January 2026.
Data from commercial banks sighted by JoyBusiness show demand largely coming from the manufacturing and energy sectors.
At last Thursday’s auction, the central bank offered about US$125 million within a band of GH¢10.70 to GH¢10.71. Total bids, however, reached about US$366 million.
Market developments
Some market analysts have attributed the rising demand to relatively thin foreign exchange supply.
They expect market pressure to persist in the coming weeks as companies return from the holiday break and business activity normalises.
Others believe demand could remain elevated in the months ahead as some firms prepare to pay dividends to shareholders outside Ghana.
Checks by JoyBusiness on the interbank market last week showed that about US$7 million was traded by banks within the GH¢10.71 to GH¢10.72 range.
Based on interbank trades, analysts estimate the cedi has depreciated by about 1.63 per cent year-to-date against the US dollar, driven mainly by sustained foreign exchange demand.
First-quarter pressures and Bank of Ghana response
The cedi has historically come under pressure in the first quarter of the year. This is largely due to businesses restocking imports and listed companies making dividend payments to foreign shareholders.
However, the Bank of Ghana has assured the market that there is no cause for panic over the stability of the cedi or the availability of foreign exchange.
Sources close to the central bank told JoyBusiness that the amounts supplied at recent dollar auctions reflect ongoing foreign exchange management measures.
The Bank of Ghana has maintained that it has sufficient reserves to meet market demand.
Official data show that Ghana ended 2025 with gross international reserves of about $13.8 billion.
The central bank says it is closely monitoring market developments and will intervene, as necessary, through its foreign exchange intermediation programme to adequately meet demand.
FX intermediation programme
In December 2025, the Bank of Ghana announced plans to sell up to US$1 billion to the market in January 2026 under its Foreign Exchange Intermediation Programme.
The auctions, according to the bank, are being guided by the newly approved Foreign Exchange Operations Framework.
The central bank said the move marks the operationalisation of measures under the framework and aligns with its reserve accumulation objectives.
It added that the programme is expected to help dampen volatility in the foreign exchange market when needed, particularly under the Domestic Gold Purchase Programme.
In November 2025, the Bank of Ghana said its Board had approved the new Foreign Exchange Operations Framework to clarify the objectives and principles guiding its FX operations.
The regulator said the framework reinforces its commitment to macroeconomic stability under the inflation-targeting regime and a flexible, market-determined exchange rate system.
Cedi’s performance in 2025
The Bank of Ghana reported that the cedi recorded a cumulative appreciation of 40.67 per cent against the US dollar in 2025, ending the year at about GH¢10.45 to the dollar.
In December, average daily trading volume on the interbank market stood at $19.7 million, contributing to a total monthly volume of about $394 million.
Attention is now turning to the central bank’s strategy for the first quarter of 2026, a period when the cedi typically faces pressure from rising import demand and dividend payments to foreign shareholders.
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