BoG Unleashes $1 Billion to Stabilize Cedi

The Bank of Ghana (BoG) has announced plans to inject up to $1 billion into the foreign exchange market in August through its Forex Intermediation Programme. This move comes as the Ghana cedi faces renewed pressure from increased dollar demand, with businesses demanding more dollars than the market can provide.

According to information gathered by JOYBUSINESS, the planned auctions will be conducted every two weeks and will be open to licensed commercial banks. The Bank of Ghana has stated that this move is part of measures to operationalise its Foreign Exchange Operations Framework and support its reserve accumulation programme.

The cedi's depreciation has been attributed to increased foreign exchange needs from energy sector players financing crude oil imports, finished petroleum products, and payments to power producers. However, the Bank of Ghana has maintained that businesses should not panic, describing the recent pressure as temporary market movements.