The Bank of Ghana (BoG) is preparing to sell up to $1 billion in foreign exchange through its Forex Intermediation Programme in August, aiming to counter renewed pressure on the Ghanaian cedi.
The intervention comes as demand for US dollars continues to outstrip supply in the local market, exacerbating volatility in the currency pair.
5% against the US dollar in the interbank market during July, according to the central bank’s latest Summary of Economic and Financial Data.
This move follows a period of significant weakness for the cedi, which depreciated 9.5% against the US dollar in the interbank market during July, according to the central bank’s latest Summary of Economic and Financial Data.
The sharp decline reflects ongoing structural imbalances and persistent demand for hard currency, which has kept downward pressure on the local unit.
The planned August sales represent a substantial injection of liquidity into the foreign exchange market, underscoring the central bank’s commitment to stabilizing the cedi.
By increasing the supply of dollars, the BoG aims to narrow the gap between demand and available supply, thereby supporting the currency’s value and reducing volatility for importers and businesses reliant on foreign exchange.