BOG Cuts Policy Rate
Sep 18, 2025
Cedi Records Marginal Gains Following Bank of Ghana's New Forex Intervention Measures
October 11, 2025
The Ghanaian cedi has recorded marginal gains on the interbank market following changes to the Bank of Ghana's Market Intervention and Forex Auction Programme, according to the Chief Executive Officer of the Ghana Association of Banks (GAB), John Awuah.
The market has responded positively to the news, resulting in a drop in interbank rates, Mr Awuah revealed during an interview on October 9, 2025.
The Governor of the Bank of Ghana, Dr Johnson Asiama, announced that the Central Bank will, from October 2025, commence foreign exchange (FX) intermediation under the Domestic Gold Purchase Programme, with plans to sell up to US$1.15 billion during the month through twice-weekly, price-competitive auctions open to all licensed banks.
Dr Asiama explained that there will be no conditions or earmarking for allocations in order to ensure a level playing field and transparent market access.
According to Mr Awuah, the development indicates that the market is reacting positively to industry reforms, with the market already pricing expectations of improvements, hence the reduction in rates.
The GAB CEO also attributed the improvement partly to the Bank of Ghana's decision to review the Net Open Position for commercial banks, which has gone a long way to improve foreign exchange supply for commercial banks.
Mr Awuah expressed confidence that if the current development is sustained, the era of volatility will be a thing of the past, noting that businesses depend on exchange rate stability to aid planning.
Mr Awuah confirmed that the supply of dollars has improved significantly, boosting foreign exchange liquidity for banks, enabling them to meet genuine foreign exchange requests from businesses.
Checks by vistanewsgh.com show that interbank rates have moved from nearly GH¢13.00 last week to hover around GH¢12.35 – 12.40.
A treasurer with a commercial bank confirmed that liquidity in the banking sector had improved significantly by Wednesday, October 8, 2025 even on a day when the Bank of Ghana was not actively supplying dollars.
On Monday, October 6, 2025, the cedi was selling at over GH¢13.50 to the dollar; however, some forex bureaus were quoting around GH¢13.20 as of Thursday.
Some forex operators told told vistanewsgh.com that dollar supply on the market has improved, while some institutions that had been hoarding foreign exchange are now rushing to sell their holdings to commercial banks and the Bank of Ghana.
The new measures represent a significant shift in Ghana's forex management strategy, with industry stakeholders expressing optimism about long-term currency stability and improved market predictability.
