BoG increases dollar supply to banks
By Praisebell Rosemond Larbi
The Bank of Ghana (BoG) has stepped up its intervention in the foreign exchange market, increasing the amount of dollars sold to commercial banks through its latest forward auction programme.
In the most recent seven-day FX forward auction, the Central Bank sold USD208 million to banks, more than double its initial offer of USD100 million.
The official results indicated that the dollars were auctioned at exchange rates ranging between GHD11.80 and GHD12.15 per dollar.
By the close of the session, the rates had converged around GHS12.05 to GHS12.15.
This intervention comes at a time when the BoG has not been particularly “heavy” on the forex market in terms of supplying dollars, leading to concerns from commercial banks about liquidity shortages.
Some banks argue that the limited supply of foreign exchange from the regulator has contributed to persistent pressure on the cedi, while also constraining their ability to execute certain transactions.
The BoG, however, has maintained that it has adequate reserves to support the market.
The BoG Governor, Dr Johnson Asiama, in an interview with the media, explained that the Bank’s interventions are being carefully managed given Ghana’s ongoing International Monetary Fund (IMF) programme and the significant dollar-denominated debt repayments due in 2026.
“We have taken measures to deal with liquidity challenges, including a directive to mining firms to channel their foreign exchange inflows directly through commercial banks rather than the Bank of Ghana,” Dr Asiama revealed.
He added that other policy measures are being implemented to ease pressures on the interbank market and improve overall FX liquidity.
Despite the sizeable increase in the latest auction, data from the Central Bank show that overall FX market interventions have slowed in recent months.
In August 2025, the BoG sold approximately USD737 million through its spot and forward auction programmes, an 18 per cent decline compared to July 2025.
Market analysts say this trend suggests a deliberate move by the BoG to reduce dollar sales on the market in line with its cautious approach under the IMF-supported programme.
They believe that while the larger-than-expected auction signals a short-term response to market pressures, the Central Bank is likely to remain measured in its interventions to preserve reserves.
