The Bank of Ghana (BoG) has introduced a new Foreign Exchange (FX) Operations Framework aimed at improving transparency, boosting market confidence, and ensuring greater stability in the country’s foreign exchange market.
The framework, approved by the BoG Board, represents a major policy shift that clearly outlines the goals, principles, and operational procedures guiding the central bank’s interventions. It adopts a rule-based “discretion-under-constraint” model, ensuring that market actions are driven by transparent, pre-announced criteria instead of ad-hoc decisions.
In a statement released on Tuesday, the BoG said the move underscores its commitment to macroeconomic stability under its inflation-targeting policy while maintaining a flexible, market-driven exchange rate regime.
The new FX Operations Framework will focus on three main objectives:
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Reserve Accumulation – building buffers to cushion against external shocks.
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Volatility Management – minimizing excessive short-term fluctuations without pegging the cedi.
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Market-Neutral Intermediation – transparently channeling FX inflows from sources such as the Gold Purchase Programme and export surrender requirements into the market.
Under the new system, the BoG will conduct competitive, variable-rate, fixed-amount FX auctions, with auction sizes announced in advance and results published on the same day. To promote accountability, the central bank will also release aggregated monthly data on its FX operations within five business days of each month’s end.
“This new FX Operations Framework reflects our commitment to transparency, market confidence, and macroeconomic stability,” the Bank said. “By clarifying our objectives and processes, we aim to strengthen resilience while maintaining flexibility in Ghana’s exchange rate regime.”
The rollout comes at a time when the Ghana cedi has been one of sub-Saharan Africa’s best-performing currencies, supported by sound policy measures and consistent foreign exchange inflows.
Source: Citinews
