BoG Clarifies $10bn Forex Support for Debt Payments and IPPs

The Bank of Ghana (BoG) has clarified that the approximately GH₵10 billion in forex market support provided this year was used to settle essential payments, and not solely to prop up the Cedi.

According to the Central Bank, the funds covered obligations to Independent Power Producers (IPPs), bondholders, dividend payments, and other critical commitments. JOYBUSINESS sources indicate a significant portion of the disbursement went towards servicing bond repayments.

Sources close to the BoG emphasized to JOYBUSINESS that the auctions were primarily aimed at supporting vital payments across the economy over the past eleven months, rather than directly defending the Ghana Cedi.

This clarification comes amid public debate suggesting the GH₵10 billion released between January and early December 2025 was chiefly for Cedi stabilization. However, some analysts concede that even while directed toward crucial sectors, the interventions would have indirectly supported the local currency through demand and supply dynamics.

The BoG benefitted from proceeds of the Domestic Gold Purchase Programme, allowing it to meet its debt obligations, bolster reserves, and fund crucial payments without depleting its foreign exchange reserves. The Central Bank’s Economic and Financial Data shows international reserves at US$91 billion in December 2024.

By October 2025, reserves had risen to US$114 billion, with projections indicating a year-end close above US$12 billion.

Looking ahead, the BoG stated that future market interventions will be guided by its new Foreign Exchange Operations Framework. This framework, according to the Bank, reinforces its commitment to macroeconomic stability within the inflation-targeting regime.

The Bank further added that the framework aligns with recommendations from the International Monetary Fund (IMF), adopting a rule-based, market-driven system characterized by competitive auctions and clearly defined objectives. The BoG emphasized the framework was developed in consultation with the IMF, reassuring stakeholders that there is no cause for alarm regarding its compatibility with the ongoing IMF programme.

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