Africa-Press – Ghana. The Bank of Ghana (BOG) has announced a new Foreign Exchange Operations Framework, reinforcing its commitment to a market-determined exchange rate while aiming to curb excessive volatility and build external reserves.
The new framework, approved by the BOG Board, clarifies the objectives and principles guiding the central bank’s activities in the foreign exchange market.
According to a press release copied to the Ghana News Agency, the BOG will pursue three key objectives including accumulating foreign reserves as a buffer against external shocks, dampening excessive short-term volatility, and intermediating foreign exchange flows in a market-neutral manner.
The central bank emphasised that its interventions would not target a specific exchange rate level but would instead address market failures.
This move comes amid longstanding concerns from international partners, including the World Bank, about the extent of the central bank’s interventions in the foreign exchange market.
Financial institutions have often cited such interventions as a factor that could potentially distort the market and affect the cedi’s true valuation.
The new framework seeks to address these concerns by prioritising transparency.
The BOG will pre-announce auction amounts, publish results on the same day, and release detailed monthly data on its operations within five business days.
The announcement follows a period of significant activity from the central bank.
Data from the BOG indicates that it auctioned a substantial $1.15 billion in October 2025, highlighting its active presence in the market.
Under the new rules, the BOG will channel foreign exchange from sources like the Gold Purchase Programme through competitive, variable-rate auctions twice a week, with a schedule published at the start of each month.
The Bank of Ghana says the framework is designed to strengthen market confidence and preserve the flexibility of Ghana’s exchange rate regime.
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