Dr. Johnson Asiama
The Bank of Ghana (BoG) Board has introduced a new Foreign Exchange (FX) Operations Framework, designed to clarify the objectives and principles guiding the BoG’s FX operations.
A statement issued by the Central Bank on November 11, 2025, said the framework reinforces the bank’s commitment to maintaining macroeconomic stability under its inflation targeting mandate and a flexible exchange rate regime, where the exchange rate remains market-determined.
According to the Central Bank, its forex operations will first support reserve accumulation to provide a buffer against external vulnerabilities, dampen excessive short-term volatility in the foreign exchange market as well as respond to disorderly conditions without undermining exchange rate flexibility.
It said, “BoG will intermediate FX flows in a market-neutral manner, using inflows from sources such as the Gold Purchase Programme, or other export surrender requirements.
The framework emphasises a rule-based approach that allows exchange rates to be determined by market forces while limiting excessive short-term volatility but not eliminating it”.
The Central Bank also stated that Forex interventions will follow a structured discretion-under-constraint approach, ensuring that interventions do not target a specific exchange rate level but rather address market failures, such as the absence of hedging solutions for tail risks.
“Reserve accumulation and intermediation objectives will be achieved through transparent and well communicated operations. FX operations will be conducted through competitive, variable-rate, fixed-amount auctions,” it said.
“Transparency is a cornerstone of the new framework. Auction amounts will be announced in advance, and results will be published on the same day. Twice-weekly FX operations for flow intermediation will be pre-announced at the beginning of each month, while interventions to dampen excessive short term volatility will be announced either on the same day or one day prior to execution,” parts of the statement read.
The Bank of Ghana further indicated that it will publish aggregated monthly FX operations data to distinguish between operational objectives, within five business days after the end of each month on its website.
The breakdown, it explained will help market participants and the public understand the intent behind BOG’s actions and strengthen transparency and accountability.
By Ebenezer K. Amponsah