Cedi Strength: Bank of Ghana Pumped $10 Billion Into Forex Market to Aid Local Currency
- The Bank of Ghana has pumped about $10 billion into the forex market since January 2025 to help strengthen the cedi
- In October alone, the Bank of Ghana injected $1.15 billion into the market under the FX Intermediation Programme
- According to the World Bank, the cedi is the best-performing currency in Sub-Saharan Africa in the first eight months of 2025
The Bank of Ghana (BoG) has injected about $10 billion into the forex market since January 2025 to help stabilise the cedi.
This was money sold to commercial banks and businesses to meet their dollar needs.
Source: Getty Images
Joy News reported that this was part of a broader strategy to meet market demand for dollars, and not a programme designed solely to defend the cedi.
The forex has come from the Bank of Ghana's Domestic Gold Purchase Programme, which has generated windfall gains from rising gold prices.
The central bank has executed the programme without depleting its reserves. Officials say the support has been structured to ensure Ghana’s debt obligations and reserve build-up efforts are not affected.
It has channelled portions of the gold windfall into reserve accumulation, upcoming debt repayments, and dollar support for the market.
The latest Economic and Financial Data from the Central Bank showed that Ghana’s international reserves stood at $9.1 billion in December 2024.
By October 2025, reserves had improved to $11.4 billion, with strong indications that the year could close above $12 billion.
In October alone, the Bank of Ghana injected $1.15 billion under the FX Intermediation Programme.
A lawyer and legal analyst, Amanda Clinton, raised concerns about what this intervention means in the context of the 5% tax on forex withdrawals.
"The Bank of Ghana’s rescue is designed to increase dollar supply, support importers, stabilise inflation, and restore confidence in the financial system... But the 5% to 6% withdrawal tax sends the opposite message."
"You cannot inject $10 billion USD into the market and simultaneously penalise citizens and businesses for accessing dollars. It is macroeconomic contradiction; one that risks neutralising the impact of the entire rescue."
She stressed that no economy stabilises by expanding supply and taxing usage at the same time.
What the BoG has said about the cedi trend
Speaking during the IMF/World Bank Spring Meetings, Bank of Ghana Governor Johnson Asiama said Ghana’s foreign exchange market has regained its stability, with commercial banks now driving trade rather than the central bank.
He said the interventions by the Bank of Ghana were temporary measures to cushion the market during a period of heavy outflows and lumpy payments.
Source: Getty Images
He explained that between the second and third quarters, the central bank had to meet large financial obligations, including billions of dollars in arrears owed to Independent Power Producers.
The period also saw some domestic debt exchange bondholders deciding to exit their investments following the appreciation of the cedi.
3News earlier reported that Asiama further noted that the Ghana cedi has appreciated cumulatively by 37.04% as of October, reversing the sharp 19.2% depreciation in 2024. It was, however, predicted to depreciate towards the end of 2025.
According to the World Bank, the cedi is the best-performing currency in Sub-Saharan Africa in the first eight months of 2025. Inflation has eased, driven by a tight monetary policy stance, exchange rate stability helped by gold exports, and a broad moderation in price pressures.
Forex analyst explains new normal for the cedi
Samuel Asiamah, a forex analyst, gave insight to YEN.com.gh that could help people looking to navigate the forex volatility as the cedi continued.
The practice of hoarding dollars to guard against inflation and protect, purchasing power is now riskier.
Asiamah explained that the cedi’s fair value has adjusted closer to equilibrium, so big profits from dollar hoarding are shrinking.
Source: YEN.com.gh
Delali Adogla-Bessa (Head of Current Affairs and Politics Desk) Delali Adogla-Bessa is a Current Affairs Editor with YEN.com.gh. Delali previously worked as a freelance journalist in Ghana and has over seven years of experience in media, primarily with Citi FM, Equal Times, Ubuntu Times. Delali also volunteers with the Ghana Institute of Language Literacy and Bible Translation, where he documents efforts to preserve local languages. He graduated from the University of Ghana in 2014 with a BA in Information Studies. Email: delali.adogla-bessa@yen.com.gh.
Amanda Akuokor Clinton (International lawyer and litigator) Amanda Akuokor Clinton is a distinguished Ghanaian lawyer and entrepreneur, renowned for her expertise in corporate law, litigation, crisis management, and market entry strategies across Africa. As the founding partner of Clinton Consultancy, she has been instrumental in guiding multinational corporations through complex legal landscapes, ensuring seamless operations within the African market
