BoG Clarifies Use of $10bn Forex Support

By Praisebell Rosemond Larbi

The Bank of Ghana (BoG) has clarified that the reported $10 billion in foreign exchange support provided between January and early December 2025 was deployed primarily to meet critical national obligations, not solely to stabilise the cedi, as widely speculated.

According to the Central Bank, the foreign currency allocated through its auction program during the year was used to facilitate essential payments, including settlements to Independent Power Producers (IPPs), bondholder obligations, dividend repatriation, and other statutory commitments across the economy.

BoG noted that while the interventions inevitably supported the foreign exchange market, the core purpose was to honour major payment obligations that could have destabilised the economy if left unmet.

In a statement accompanying its latest clarification, the Central Bank explained that “the amounts auctioned were not primarily for defending the Ghana cedi but for supporting major payments across the economy over the past 11 months.”

Background to the Debate

Public discussion around the BoG’s forex interventions intensified after analysts noted that nearly $10 billion had been supplied to the market in 2025. The perception that the Central Bank was aggressively defending the cedi generated debate over the sustainability of the interventions and the potential implications for Ghana’s IMF-supported program.

Some economists, however, argue that even if the funds were channelled into essential obligations, the resulting boost to market liquidity still contributed indirectly to the cedi’s relative stability.

The BoG’s ability to make these payments was enhanced by windfalls from its Domestic Gold Purchase Program (DGPP), which has strengthened reserve buffers and allowed the Bank to meet critical commitments without compromising its reserve build-up strategy.

The Central Bank’s Economic and Financial Data shows that Ghana’s gross international reserves improved significantly from $9.1 billion in December 2024 to $11.4 billion in October 2025, with strong indications that the year could close above $12 billion.

Future FX Market Management

The Bank of Ghana reiterated that future foreign exchange auctions will be guided strictly by its new Foreign Exchange Operations Framework, designed to enhance transparency, predictability and efficiency in market interventions.

The framework, the Bank said, reinforces the broader objective of maintaining macroeconomic stability under the inflation-targeting regime. It also reflects reforms recommended under Ghana’s IMF program, incorporating rule-based auction systems and clear operational motives aligned with market conditions.

This renewed approach seeks to eliminate discretionary interventions while ensuring that the Bank retains the capacity to address systemic risks when necessary.

No Conflict with IMF Program

Responding to suggestions that recent interventions may breach program conditions, the Bank of Ghana insisted that the entire framework was developed in collaboration with the IMF, leaving no grounds for concern.

“The framework is fully aligned with the Fund’s recommendations and supports a market-driven, transparent, and rules-based FX system,” the statement said.

With reserves improving and forex operations now guided by a formal structure, the Central Bank says it remains committed to stability, credibility and adherence to program targets, even as it continues to meet essential payment obligations across the economy.