BoG injects $2.01bn into forex market as cedi records first monthly gain of 2026

The Bank of Ghana (BoG) injected $2.01 billion into the foreign exchange (FX) market in June 2026 as part of an aggressive intervention strategy aimed at meeting rising demand for US dollars and stabilizing the Ghanaian cedi.

Information obtained by JoyBusiness indicates that the central bank supplied foreign currency through two major intervention programmes, helping ease pressure on the local currency after months of sustained depreciation.

According to sources, the Bank of Ghana sold $1.2 billion through its Forex Intermediation Programme (FIP) during June. The sales were conducted through twice-weekly auctions and aligned with the Bank's monthly auction target.

Despite meeting its planned allocation, demand from commercial banks significantly exceeded supply. Banks submitted bids worth $3.42 billion, nearly three times the amount offered, highlighting the strong appetite for foreign exchange among businesses and financial institutions.

Market sources say demand for US dollars remained exceptionally high throughout June as importers and companies sought foreign currency to finance international trade and settle external obligations.

The June auctions were carried out under the Domestic Gold Exchange Programme, a policy designed to strengthen Ghana's foreign exchange reserves while supporting the stability of the local currency.

Beyond the auction system, the central bank also supplied an additional $811 million through its FX Intervention Programme, bringing the total amount injected into the market during June to $2.01 billion.

The FX Intervention Programme allows the Bank of Ghana to intervene directly in the market whenever excessive exchange rate volatility threatens macroeconomic stability.

Officials say the intervention forms part of the Bank's broader Foreign Exchange Operations Framework, which seeks to balance exchange rate stability with the long-term objective of building and preserving international reserves.

The large-scale interventions delivered positive results for the local currency.

The Ghana cedi appreciated by 3.30% against the US dollar in June 2026, marking its first monthly gain since the beginning of the year.

Financial analysts attribute the turnaround largely to the central bank's increased supply of foreign exchange, which helped reduce pressure on the currency and improve market liquidity.

Although the June performance represents a significant recovery, the cedi has still recorded a cumulative depreciation of 7.9% against the US dollar between January and July 2026.

Nevertheless, economists say the latest interventions have considerably slowed the pace of depreciation after the local currency experienced persistent weakness during the first half of the year.

The cedi came under sustained pressure earlier this year as businesses increased demand for US dollars to finance imports and replenish inventories.

At the same time, higher international crude oil prices pushed Ghana's import bill above earlier expectations, increasing the demand for foreign currency from oil marketing companies and other energy sector players.

The combination of stronger import demand and elevated global commodity prices contributed to increased pressure on the country's foreign exchange market.

Looking ahead, the Bank of Ghana plans to reduce its monthly Forex Intermediation Programme allocation to $1 billion in July 2026, down from the $1.2 billion auctioned in June.

While the central bank has not officially explained the reduction, market analysts believe the decision reflects improving conditions in the foreign exchange market following June's successful interventions.

Data reviewed by JoyBusiness suggest that demand for US dollars is beginning to moderate as many businesses have completed their major import and inventory restocking activities for the year.

Analysts also point to recently introduced Bank of Ghana measures aimed at reducing speculative demand for foreign currency, alongside expectations of lower global crude oil prices, which could further ease pressure on Ghana's foreign exchange market.

The Bank of Ghana has assured commercial banks and market participants that it will continue operating a transparent foreign exchange market.

The central bank says it will regularly disclose relevant information regarding its foreign exchange operations, including activities under the Forex Intermediation Programme, as part of efforts to strengthen market confidence and maintain orderly trading conditions.