BoG to Sell $800m in December
The Bank of Ghana (BoG) is adjusting its Foreign Exchange Intermediation Programme, scaling back operations under the revised Domestic Gold Purchase initiative.
Joy Business data indicates the Central Bank intends to sell up to $800 million on the market throughout December 2025. Auctions have already taken place on December 2nd and 4th, with $100 million offered at each.
According to a communication to market participants, the December auction volume represents a slight reduction compared to the amounts sold in September, October, and November 2025.
The BoG attributes this decision to a projected decrease in foreign exchange demand during the festive season, a period typically characterized by slower market activity and reduced FX requirements.
The Bank has assured market players that future monthly volumes will be determined by prevailing economic conditions.
These interventions are being carried out under the recently approved FX Operations Framework, with a primary focus on bolstering the country’s foreign exchange reserves.
The sales will continue to be conducted in a market-neutral manner and on a spot basis, through twice-weekly auctions open to all licensed banks.
Background
The revised FX Intermediation Programme was launched by the Bank of Ghana in September. $1.1 billion was auctioned during that month. This increased to $1.3 billion in October 2025.
In November 2025, the Bank targeted and successfully sold $1 billion. The reduction to $800 million for December signifies a measured approach to FX intervention.
The auctions remain price-competitive and open to all licensed banks.
Market analysts believe these interventions have played a crucial role in the cedi’s strong performance throughout 2025.
Cedi’s Performance and Trade Volumes
Data from the Bank of Ghana reveals the cedi has appreciated by 31% against the dollar year-to-date. While still substantial, this represents a slight moderation 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, the average daily trading volume on the interbank FX market was approximately $5.5 million, resulting in a total monthly volume of $111.11 million.
Revised FX Framework
The Bank of Ghana’s Board approved a new Foreign Exchange Operations Framework in November, aiming to clarify the objectives and principles guiding its FX operations.
According to the regulator, the framework reinforces its commitment to macroeconomic stability within the existing inflation-targeting regime and a flexible, market-driven exchange rate system.
The framework outlines three core objectives:
- Support reserve accumulation to mitigate external vulnerabilities.
- Reduce excessive short-term volatility in the FX market by addressing disorderly conditions without disrupting exchange rate flexibility.
- Intermediate FX flows in a market-neutral manner, utilizing inflows from the Gold Purchase Programme or export surrender requirements.
This means the BoG will channel FX inflows into the market in a transparent and non-directional way. The Bank will adopt a “structured discretion-under-constraint” approach for future interventions, focusing on addressing market failures rather than targeting specific exchange rate levels.
“Reserve accumulation and intermediation objectives will be achieved through transparent and well-communicated operations,” the Bank stated.
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