By Prince Ahenkorah
The Bank of Ghana (BoG) is preparing a bold $1.15bn foreign exchange injection in October 2025, a move that signals both confidence and desperation in its bid to stabilise the cedi amid persistent currency volatility and external pressure.
The FX sales anchored in the Domestic Gold Purchase Programme will be executed via twice-weekly spot auctions, open to all licensed banks. Governor Johnson Asiama, speaking to commercial bank chiefs in Accra, stressed the auctions would be “transparent and non-discriminatory,” a nod to growing concerns over opaque central bank interventions in recent months.
The BoG’s pivot to gold-backed FX intermediation reflects a broader strategy to deepen the interbank market and improve price discovery. But insiders warn that the scale of the injection US$1.15bn in a single month risks draining reserves if global commodity prices or remittance flows falter.
The cedi has faced sustained depreciation against major currencies, exacerbated by import-heavy demand and tepid export growth. While the BoG insists the auction volumes may be adjusted based on market conditions, traders remain sceptical about the central bank’s ability to maintain momentum without further reserve depletion.
In parallel, the BoG is nudging commercial banks to expand lending to SMEs and agribusinesses sectors long neglected but deemed critical to Ghana’s economic resilience. The central bank is also urging banks to develop export-oriented financial products, use local insurers for import cover, and consider stock market listings to boost transparency and capitalisation.
The Domestic Gold Purchase Programme, through which the BoG acquires locally mined gold to shore up reserves, remains a cornerstone of its de-dollarisation agenda. Officials see it as a buffer against external shocks, though critics argue the programme’s scale is still insufficient to meaningfully shift Ghana’s currency dynamics.
With October’s FX blitz looming, all eyes are on the BoG’s ability to execute without triggering unintended market distortions. The stakes are high and the cedi’s “love life” may yet hinge on more than just gold and good intentions.