The Bank of Ghana (BoG) is set to release about $1 billion into Ghana’s foreign exchange (FX) market this month, November, under its Foreign Exchange Market Intermediation Programme.

The Foreign Exchange Market Intermediation Programme is a strategic initiative by the Bank of Ghana (BoG) to stabilise the Ghanaian cedi and improve liquidity in the forex market by auctioning US dollars directly to commercial banks.

The injection will be done twice every week in November, where the central bank will hold two separate auctions and sell the money ($300 million) to licensed commercial banks through spot sales.

However, the amount for the following months will depend on market conditions,i.e., how strong or weak the cedi is.

The BoG highlighted its commitment to transparency, stressing that it will publish all information about all its forex operations and interventions so the public knows what’s happening. In October 2025, the BoG already injected $1.15 billion into the market.

This will not be the first injection by the Bank of Ghana this year. News about the injection emerged when the cedi began to stabilise in the first quarter of the year, following the President's confirmation during his first official meeting with the press in September, where he noted that the BoG has withdrawn its intervention in the forex market, stressing the need to strike a balance between supporting exporters and not overburdening importers.

IMF, in its country report, confirmed that the central bank injected $1.4 billion in the first quarter of the year. In March 2025, an additional $264 million was released specifically to counter volatility and reinforce the cedi’s strength.

Subsequently, a substantial injection of $1.15billion was made in October following the launch of the BoG’s Domestic Gold Purchase Programme in July, where part of the programme covers the sale of some of the gold it acquires to raise foreign exchange, and then pump it into the country's forex market to stabilise the cedi.

Looking ahead to November 2025, the Bank has announced plans to inject up to $1 billion through twice-weekly spot auctions to commercial banks. This move is part of its ongoing strategy to maintain currency stability and ensure adequate forex supply. If the November auction happens just as reported, that will bring BoG’s forex intervention to a total of approximately $3.814 billion this year.

In total, the Bank of Ghana’s interventions for the year amount to approximately $3.814 billion, based on publicly available data and projections.

As a result, the cedi became stronger in October. The Ghana cedi’s strong performance was a central theme highlighted by President John Mahama in an interaction with potential investors in Singapore and Japan, during his visit to the Asian continent. 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 proved short-lived after its rapid depreciation made it the worst-performing currency in a latest report by a global financial news outlet, Bloomberg. According to Bloomberg’s recent report released on Thursday, September 4, the Ghana cedi was ranked as 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 explained that the new developments were attributed to the“strong gold prices”, while emphasising 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, Bloomberg detailed. 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 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”.This informed BoG’s decision to pump millions into the forex market which led to the cedi's appreciation.

According to BoG data, the cedi gained 13.9% against the dollar by the end of October 2025. Overall, it had appreciated 34.86% since the start of the year. Average daily dollar trading was about $22 million, with a total of $484 million traded on the interbank market in October.

Meanwhile, a strong cedi tends to have an impact on several aspects of the economy, including fuel and energy costs, reduced costs for imports and the anchoring of inflation expectations.The Bank of Ghana has projected that headline inflation will fall within its medium-term target of 8 ± 2% by the end of 2025.

The Central Bank attributed this expected decline to tighter monetary policy, the strengthening of the cedi, and continued fiscal consolidation efforts.

It added that supply-side pressures have eased, resulting in lower food and overall inflation, with risks now tilted to the downside.

Nonetheless, the Bank warned that some upward risks persist, including supply chain disruptions, global trade tensions, a 2.5% increase in utility tariffs, and a new 1.0% energy levy on ex-pump prices, which could push inflation up.

Looking ahead, the Bank expects exchange rate stability to continue, supported by a stronger external sector and a buildup of international reserves that have exceeded program targets under the IMF’s Extended Credit Facility.

It noted that a tight monetary policy stance, fiscal discipline, and stable crude oil prices are likely to cushion the economy against inflationary pressures.