BoG to sell up to $1bn in August as cedi faces fresh dollar demand pressure

The Bank of Ghana (BoG) is set to inject up to $1 billion into the foreign exchange market in August 2026 through its Forex Intermediation Programme, as the Ghana cedi faces renewed pressure from increased dollar demand.

Information gathered by JOYBUSINESS indicates that the planned auctions will be conducted under the Bank of Ghana’s Foreign Exchange Operations Framework.

The central bank has informed market participants that the move forms part of measures to operationalise the FX Operations Framework and will support the objectives of its reserve accumulation programme.

The FX Intermediation Programme, according to the Bank of Ghana, is designed to help reduce excessive volatility in the foreign exchange market when necessary, particularly through activities linked to the Domestic Gold Purchase Programme.

JOYBUSINESS understands that the dollar auctions will be conducted every two weeks and will be open to licensed commercial banks.

Cedi faces renewed pressure

The latest move comes as the Ghana cedi experiences fresh depreciation pressures, with demand for foreign exchange currently exceeding supply in parts of the market.

Data gathered by JOYBUSINESS from some commercial banks suggest that businesses have been demanding more dollars than the market has been able to provide.

Some market participants have attributed the pressure to increased foreign exchange needs from energy sector players financing crude oil imports, finished petroleum products and payments to power producers.

Others believe the challenge is linked to a limited supply of dollars relative to business demand.

Recent Bank of Ghana data indicate that the country’s international reserves have declined to a little over $12 billion.

However, the central bank has maintained that businesses should not panic, describing the recent pressure as temporary market movements.

Officials have insisted that the Bank remains capable of supporting the market when necessary and ensuring that critical imports are not affected.

July FX support

The planned August auction follows the Bank of Ghana’s FX support programme in July 2026.

The central bank told commercial banks that the July operations were conducted in a “market neutral manner” on a spot basis through twice-weekly open auctions accessible to all licensed commercial banks.

The Bank of Ghana also disclosed that as of the end of July 2026, the cedi had cumulatively depreciated by 10.61%.

During the same period, average daily trading volume in the interbank market stood at $22.64 million, contributing to a total monthly interbank volume of $498 million.

The central bank has reiterated its commitment to transparency, saying it will continue to disclose relevant information on its foreign exchange market operations, including activities under the FX Intermediation Programme.

The Bank has also maintained that there was no direct market intervention in July 2026.

History of FX Intermediation Programme

The Bank of Ghana began its revised FX Intermediation Programme in September 2025, with an initial $1.1 billion auction.

The amount increased to $1.3 billion in October 2025, while in November 2025, the central bank announced a $1 billion target and sold the full amount.

For December 2025, the target was reduced to $800 million.

The auctions have continued on a spot basis through twice-weekly, price-competitive sales open to all licensed banks.

Market watchers have linked the programme to the cedi’s strong performance in 2025.

In June 2026, the Bank of Ghana injected $2.01 billion into the foreign exchange market to meet demand and support the local currency.

JOYBUSINESS gathered that $1.2 billion of that amount was sold through the Forex Intermediation Programme, while commercial banks submitted bids totalling $3.42 billion, reflecting strong demand for foreign exchange.

The amount was reduced to $1 billion in July and remains at the same level for August 2026.

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