BoG to inject $1.15bn into forex market
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) has announced plans to inject up to USD1.15 billion into the foreign exchange (FX) market in October 2025 under its Domestic Gold Purchase Programme (DGPP), as part of efforts to stabilise the cedi and enhance liquidity in the interbank market.
According to the central bank, the FX sales will be conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks.
This forms part of the BoG’s broader strategy to deepen the local FX market, improve price discovery and reduce exchange rate volatility.
Speaking at a meeting with heads of commercial banks in Accra, the Governor of the Bank of Ghana, Dr Johnson Asiama, said the initiative will be implemented in a transparent and non-discriminatory manner, with no special conditions or earmarked allocations.
“Beginning October 2025, the Bank of Ghana will commence foreign exchange intermediation under the Domestic Gold Purchase Programme, with plans to sell up to USD1.15 billion for the month. These sales will be conducted on a spot basis through twice-weekly, price-competitive auctions open to all licensed banks,” Dr Asiama stated.
He explained that the measure is designed to strengthen the interbank market, promote fair pricing and ensure smoother FX market operations. “Our overarching goal remains to deepen the FX market, enhance price discovery and smooth volatility,” he added.
The Governor indicated that monthly auction volumes may be reviewed depending on market conditions but assured that the central bank will continue to operate with full transparency, consistent with best international practices.
Beyond foreign exchange management, Dr Asiama urged commercial banks to expand credit to productive sectors, particularly small and medium enterprises (SMEs) and agribusinesses, which he described as “the backbone of Ghana’s economic transformation.”
He further encouraged banks to develop export-oriented financial products to support value addition in agriculture and manufacturing, and to make greater use of local insurance firms for import coverage in order to retain foreign exchange within the domestic economy.
The Governor also called on banks to consider public listings on the Ghana Stock Exchange (GSE) to strengthen their capital base and improve governance and transparency in the sector.
The Domestic Gold Purchase Programme, launched by the BoG in 2022, seeks to leverage Ghana’s gold resources to build a stronger reserve position and reduce the economy’s dependence on foreign currency inflows.
Under the programme, the Bank purchases locally mined gold in cedis, which it can then use to support foreign exchange operations.
