Ghana’s total foreign exchange interventions since the height of its economic crisis in 2022 have exceeded $7.4 billion, according to International Monetary Fund (IMF) data analysed by JoyNews Research.

The data reveal that the Bank of Ghana (BoG) injected about $1.9 billion into the forex market in 2022, the year of the crisis. Interventions fell to $1.1 billion in 2023 but surged again to $3 billion in 2024.

In just the first quarter of 2025, the Central Bank added another $1.4 billion, signalling continued efforts to stabilise the local currency.

Earlier this month, the BoG announced plans to inject $1.15 billion through its Domestic Gold Purchase Programme (DGPP). The move, aimed at easing pressure on the cedi, will bring this year’s total forex support to over $2 billion. The Bank said the funds would be disbursed through twice-weekly, price-competitive spot auctions accessible to all licensed banks.

Following the announcement, the cedi appreciated by 2.5%, reflecting renewed investor confidence in the Central Bank’s strategy. Analysts expect the local currency to maintain its strength against the US dollar through the final quarter of 2025, as offshore FX inflows and a liquid interbank market offset high dollar demand from the energy, services, and manufacturing sectors.

Dollar interventions have surged sharply in the past two fiscal years, accounting for more than 60% of total injections over the last four years. These interventions have supported one of the strongest performances of the Ghana cedi in recent memory.

According to the World Bank’s 2025 Africa Pulse Report, the cedi was the best-performing African currency against the US dollar during the first eight months of 2025, appreciating by more than 20% year-to-date.

This strong showing is attributed to the BoG’s aggressive forex interventions, coupled with rising export earnings from gold and cocoa and steady remittance inflows.

JoyNews Research data indicate that with the latest round of support, total interventions since 2022 could reach about $8.6 billion. The BoG attributes this year’s efforts to robust inflows from gold and cocoa exports and sustained remittance receipts.

Gold has remained a critical lifeline for Ghana’s external sector, with prices hitting an all-time high of $4,000 per ounce this week. This surge has strengthened the Central Bank’s ability to generate foreign exchange without heavily depleting its reserves.

Ghana is expected to retain its position as Africa’s top gold exporter, with projected export revenues surpassing $15 billion by the end of 2025, representing about 65% of total export inflows.

This windfall has provided the BoG with the “forex muscle” needed to sustain interventions while keeping a strong reserve position. The IMF’s latest Staff-Level Approval report confirms that “in collaboration with the Fund, the BoG has developed a structured foreign exchange operations framework to intermediate FX flows and smooth excessive market volatility, while accumulating international reserves.”

Ghana’s international reserves have now exceeded $10.7 billion, providing roughly 4.5 months of import cover. The IMF further noted that “international reserves accumulation continues to exceed the ECF-supported program targets, while the cedi appreciated markedly in the first half of the year.”

Historical data show that most of the Central Bank’s forex interventions typically occur in the latter part of the year. In 2024, for example, about 67% of the $3 billion injected was recorded in the final four months, coinciding with the election period.

While these consistent interventions have stabilised the cedi in the short term, they raise concerns about long-term sustainability. Analysts caution that Ghana’s reliance on gold-backed interventions exposes the economy to fluctuations in global commodity prices, underscoring the need for a more diversified foreign exchange framework.

As it stands now, the Bank of Ghana’s decisive moves have given the cedi rare strength, but maintaining that momentum will depend on how effectively the country channels its export windfall, particularly from gold into lasting economic stability.

Last month, Ghanaian economist, Professor Godfred Bokpin, projected the local currency to stabilise between the range of GH₵13.5 and GH₵14 per U.S. dollar by December this year.

Speaking to the media on Tuesday, September 16, he explained that the recent fluctuations of the value of the cedi are a natural market phenomenon influenced by supply and demand dynamics.

He noted that increased government spending will keep the currency under pressure, urging Ghanaians to remain positive and hold on to the country’s core economic strengths (like productivity, revenue generation, exports, etc., which determine long-term stability.

He stated, "We have our peak period and then we have our low period as well. In the peak period, when we experience what we call cash flow mismatch in terms of inflows and then outflows...businesses would import in anticipation of Christmas and all of that. So the demand will pick up."

Ghana cedi’s strong performance was a central theme highlighted by President John Mahama during an interaction with potential investors in Singapore and Japan weeks ago.

President Mahama emphasised the robust performance of the local currency to underscore Ghana’s macroeconomic stability and attractiveness as a destination for foreign capital.

However, the cedi’s brief gains were short-lived after its rapid depreciation made it the worst-performing currency. According to Bloomberg’s recent report released on Thursday, September 4, the Ghana cedi is the worst-performing currency among all trading currencies, attributing the depreciation to a surge in demand for dollars by companies paying for imports.

“A surge in demand for dollars by companies paying for imports has ended the Ghana cedi’s recent strong performance,” Bloomberg said.Bloomberg attributed the new development to the “strong gold prices,” while emphasizing that Ghana’s cedi has seen more than a ten percent (10%) depreciation in the current quarter.

This, Bloomberg noted, has erased the fifty percent gain against the dollar in April and June. According to Bloomberg, the cedi traded 0.1 per cent weaker at GH¢11.9507 per dollar at 1:50 a.m. Despite the losses, it has gained 23 per cent so far this year.

“Now, the currency, which had ranked first globally on the back of strong gold prices, has weakened by 13 per cent in the current quarter. Bloomberg data showed this was the steepest fall worldwide, erasing part of the 50 per cent gain recorded between April and June,” the report said.

But Bloomberg has indicated that “Despite the losses, it has gained 23 per cent so far this year based on market data.” Reacting to Bloomberg’s report, the Bank of Ghana (BoG) noted, “The cedi should be stable within a reasonable range,” the central bank said in an emailed response.

“Our role is to ensure fluctuations remain orderly, that they reflect fundamentals, and that they do not undermine confidence in the broader economy.”

Bloomberg, in April this year, ranked the cedi as the best-performing currency with a sixteen percent (16%) gain against the dollar. What made the cedi earn the tag as the worst-performing currency is the steepest decline on the global level.

The cedi’s appreciation in the last eight months helped ease inflationary pressures, pushing consumer inflation down to 21.2 per cent, the lowest in eight months at the time.

Ghana’s import-dependent economy brings in a wide range of goods, from food to machinery, with demand typically rising toward the end of the year as businesses prepare for the Christmas season.

The higher demand for dollars has piled pressure on the cedi, while the Bank of Ghana’s (BoG) limited supply of foreign exchange has added to the strain.

Head of Market-Risk Management at UMB Bank, Mr. Hamza Adam, said banks that submitted dollar requests on behalf of clients to the Bank of Ghana last week received only half of what they asked for. “This week the central bank is trying to meet all demand,” he said by phone from Accra on September 3, 2025.

Meanwhile, before Bloomberg reported on the cedi, BoG addressed the concerns of Ghanaians concerning the fast depreciation of the cedi, calling for calm. Bank of Ghana Governor, Dr. Johnson Asiama, during an interview with Joy Business, which was aired on Wednesday, August 27, mentioned that the current depreciation of the cedi was temporary, assuring a comeback soon.

"The Bank of Ghana operates a managed floating system in terms of framework; therefore, these blips will happen. But the assurance is that this is a short-term issue, and the challenges are being addressed," he assured.

According to data from the Bank of Ghana, which was shared on 23rd August, the Ghana cedi had seen a five percent (5%) depreciation. Between August 23 and August 28, the Ghanaian cedi depreciated from GH¢10.43 to around GH¢11.00 per US dollar.

The sharpest movement was between August 23 and 24, where the cedi depreciated from GH¢10.43 to GH¢10.90. The dollar was selling at GH¢10.43 on August 23, GH¢10.90 on August 24, and between August 25–27, it staggered between GH¢10.85–11.00.

As of August 28, it had crossed GH¢11, sparking major concerns. On Dr. Johnson Asiama’s part, the current depreciation is a result of the temporary shortage of foreign exchange supply in the market, resulting from the effects of the currency appreciation coupled with other phenomena that, “…we are beginning to see those phenomena at play. Imports become a lot cheaper, so it's just natural to begin to see pressure build up on the currency.”

He said there is no need for panic as the economic indicators are obviously strong, giving signs of a cedi recovery soon enough. Dr. Asiama attributed the depreciating cedi to the decline in remittance inflows, sharp appreciation of the cedi, and limited interbank trading.

“…what is happening is just because of the sharp appreciation, we are beginning to have some cash flow problems, specifically because we have seen some decline in terms of remittance inflows. Also, imports become a lot cheaper, so it's just natural to begin to see pressure build up on the currency. Over the last two months, we have also seen very limited interbank trading,” he stated.

The Ghana cedi saw a remarkable appreciation against major trading currencies worldwide over the past six months. During the presentation of the 2025 Mid-Year Fiscal Policy Review on July 24, the Minister for Finance, Dr. Cassiel Ato Forson, revealed that the cedi has recorded a remarkable turnaround in the first six months of 2025, appreciating by 42.6% against the US dollar.Dr. Forson described the cedi’s performance as “impressive” and the first of its kind in the history of Ghana’s economy. The cedi, which was initially always experiencing depreciation, is currently showing resilience against the dollar.

He noted that the cedi, which was previously trading at about GH¢17.0 to the US dollar, had strengthened to GH¢10.4 as of July 23.

“Mr. Speaker, the cedi’s performance in the first half of this year has been impressive! The Ghana cedi experienced significant appreciation against all major trading currencies in the first six months of 2025. I am happy to inform the House that our precious cedi, which once upon a time was trading at about GH¢17.0 to the US dollar, was trading at about GH¢10.4 as of yesterday, 23rd July, 2025,” he revealed.

In high spirits, the minister adopted the catchphrase from Ghanaian highlife musician King Paluta’s energetic party anthem “For the Popping (Apicki),” released on December 27, 2024, and said, “This level of appreciation of the Ghana cedi has never happened in the history of our nation. Ghanafo, cedi no apicki! Apicki apicki apicki!”

He continued that the strength of the cedi has not appreciated against just the US dollar but against the British pound as well. The cedi also gained 30.3% against the British pound and 25.6% against the euro during the same period.

This marks a sharp contrast to the same period in 2024, when the cedi depreciated by 18.6% against the dollar, 17.9% against the pound, and 16.0% against the euro.

“Similarly, the cedi, which was once trading at GH¢21.0 to the Great British Pound, was trading at about GH¢14.1 as of yesterday, 23rd July. Mr. Speaker, as of the end of June 2025, the cedi appreciated by 42.6% against the US dollar, 30.3% against the British pound, and 25.6% against the euro.

With these gains over the past few months, Dr. Cassiel stated that all the losses in the previous years had been reversed. “Mr. Speaker, I repeat, so far, we have almost reversed all the cedi depreciation in 2022, 2023, and 2024,” he mentioned.