The Bank of Ghana (BoG) is set to roll out a major market intervention this month as part of efforts to strengthen the cedi and deepen Ghana’s foreign exchange (FX) market.
Beginning October 2025, the central bank will start foreign exchange intermediation under its Domestic Gold Purchase Programme, with plans to sell up to US$1.15 billion to the market through a structured auction system.
According to the BoG, the new arrangement will involve twice-weekly, price-competitive spot auctions open to all licensed banks, designed to ensure transparency and market-based price discovery.
Speaking during a meeting with heads of commercial banks in Accra, Governor Dr. Johnson Asiama said the intervention aims to enhance liquidity and reduce volatility in the forex market.
“These sales will be conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks. There will be no special conditions or earmarked allocations,” Dr. Asiama explained.
The initiative forms part of the BoG’s broader strategy to leverage Ghana’s gold reserves to stabilize the exchange rate and reduce dependence on external currency inflows.
Officials say the programme’s flexible design allows for monthly auction volumes to be adjusted based on prevailing market dynamics, ensuring that the central bank’s interventions remain responsive and sustainable.
Beyond managing exchange rate stability, the BoG is also encouraging commercial banks to channel more credit to small and medium enterprises (SMEs) and agribusinesses, describing them as key pillars of Ghana’s productive economy.
The central bank further urged financial institutions to:
Develop export-oriented financial products to boost foreign earnings,
Partner with local insurance companies for import coverage to retain forex domestically, and
Consider public listings to improve capital strength and transparency.
Launched in 2023, the Domestic Gold Purchase Programme allows the BoG to buy gold directly from local producers to bolster national reserves. The initiative has become a cornerstone of Ghana’s long-term strategy to build a gold-backed reserve framework capable of supporting currency stability and macroeconomic resilience.
Economists say the move signals a shift toward resource-backed monetary management, positioning Ghana among a growing number of African economies using domestic assets to secure financial independence and hedge against global market shocks.
