By: Ashiadey Dotse
The Bank of Ghana (BoG) has introduced a new Foreign Exchange (FX) Operations Framework aimed at improving transparency, strengthening confidence in the market, and ensuring stability in Ghana’s foreign exchange system.
The new policy, approved by the BoG Board, is a major step toward creating a more open and predictable system for managing foreign exchange operations. It sets out clear rules, principles, and procedures that will guide the central bank’s interventions in the FX market.
According to a statement issued by the Bank, the framework will follow a “rule-based, discretion-under-constraint” approach. This means that any intervention by the BoG will be guided by pre-announced and transparent rules, rather than being done on an ad-hoc basis.
The new framework will focus on three main goals:
Building strong foreign reserves to protect the economy from external shocks.
Managing market volatility to prevent sharp short-term fluctuations in the cedi’s value.
Ensuring transparent FX intermediation by fairly channeling foreign exchange inflows, including those from gold purchases and export proceeds, into the market.
The Bank of Ghana will now conduct competitive auctions for foreign exchange sales, where the amounts will be announced ahead of time and results made public on the same day.
To promote transparency, the central bank will also publish monthly reports on its FX operations within five business days after each month ends. This report will explain the Bank’s actions and objectives, giving market participants a clearer understanding of its policies.
“The new FX Operations Framework reflects our commitment to transparency, market confidence, and macroeconomic stability,” the statement said. “By clarifying our objectives and processes, we aim to strengthen resilience while keeping Ghana’s exchange rate flexible.”
The move comes at a time when the Ghana cedi has been performing strongly among sub-Saharan African currencies, supported by steady policy management and continuous foreign exchange inflows.
The BoG believes that this framework will help maintain macroeconomic stability, build investor confidence, and make the FX market more efficient and predictable.
