The Bank of Ghana has sold more than $8 billion into the foreign exchange market since January 2026, in a bid to improve liquidity and meet demand for dollars. This massive intervention has come at a time when the cedi is facing renewed pressure against the US dollar, with the Bank of Ghana putting the cedi's depreciation at 10.61% as of the end of July.
Central Bank's $8 Billion Intervention
Data compiled by Joy Business from the Bank's FX auction calendars and market communications show that the central bank sold about $7.45 billion through its FX Intermediation Programme between January and July 2026. The Bank also deployed about $811 million through its FX Intervention Programme between January and June. This takes the total market support to more than $8.2 billion so far this year.
The Bank of Ghana has put the cedi's depreciation at 10.61% as of the end of July, a clear indication of the pressure the local currency is under. The central bank's intervention has been seen as a lifeline for the cedi, with some market participants arguing that the cedi could have come under even greater pressure without the Bank's interventions.
Ghana's International Reserves Take a Hit
Recent Bank of Ghana data indicate that Ghana's international reserves have declined to a little over $12 billion. This decline in international reserves is a worrying sign for the economy, as it could limit the central bank's ability to support the foreign exchange market in the future. Despite this, the Bank of Ghana has maintained that businesses should not panic, describing the recent movements as temporary market pressures.
The central bank has also indicated that it remains capable of supporting the foreign exchange market when necessary and ensuring that critical imports are not disrupted. This assurance has been welcomed by businesses, which have remained strong in their demand for dollars. Data gathered by Joy Business from some commercial banks also indicate that demand for dollars from businesses has remained strong.
Pressure on the Cedi Persists
The pressure on the cedi is attributed to increased foreign exchange needs from energy sector players financing crude oil imports, finished petroleum products, and payments to power producers. Others have linked the pressure to limited dollar supply relative to demand from businesses. The Bank of Ghana has put the cedi's depreciation at 10.61% as of the end of July, a clear indication of the pressure the local currency is under.
The central bank's intervention has been seen as a lifeline for the cedi, with some market participants arguing that the cedi could have come under even greater pressure without the Bank's interventions. Despite this, the cedi's value remains under pressure, with the Bank of Ghana likely to continue its intervention to support the local currency.
What's Next for the Cedi?
The Bank of Ghana plans to sell up to $1 billion through its FX Intermediation Programme during the month of August. This could take the total market support to over $9.2 billion by the end of August. The central bank's ability to continue supporting the foreign exchange market will be crucial in determining the value of the cedi in the coming months.
Source: Joy Online
