Bank of Ghana to Release $1 Billion in August as Cedi Faces Renewed Dollar Pressure

The Bank of Ghana will inject up to $1 billion into the foreign exchange market in August 2026 through its Forex Intermediation Programme, as the cedi faces mounting pressure from sustained dollar demand outstripping available supply. The move reflects central bank efforts to stabilise the local currency and ensure adequate liquidity for critical imports, particularly in the energy sector.

The planned auctions, conducted fortnightly and open to licensed commercial banks, form part of the BoG's broader Foreign Exchange Operations Framework. Officials have stressed that the intervention aims to reduce excessive volatility and support the central bank's reserve accumulation objectives, rather than representing direct market interference. This approach follows similar support measures in July, when the BoG executed what it described as "market neutral" operations through twice-weekly spot auctions.

Why the cedi is under strain

Ghana's local currency has come under fresh depreciation pressure as businesses—particularly those in the energy sector—compete for limited dollar supplies to finance crude oil imports, finished petroleum products, and payments to power producers. Commercial banks have reported that dollar demand currently exceeds available supply in parts of the market, putting downward pressure on the cedi.

Data from the BoG show that the currency depreciated by 10.61% cumulatively through July 2026, reflecting ongoing market challenges. The central bank's international reserves have also declined to just over $12 billion, raising concerns about Ghana's external position. However, BoG officials have sought to reassure market participants, describing current pressures as temporary fluctuations and maintaining that the bank retains sufficient capacity to support the market and protect critical import flows.

During July, average daily interbank trading volume reached $22.64 million, with total monthly volume of $498 million, indicating active but constrained market conditions.

The broader FX support strategy

The August intervention continues a pattern of central bank forex support that intensified in late 2025. The BoG launched its revised Forex Intermediation Programme in September 2025 with an initial $1.1 billion auction, increasing to $1.3 billion in October before settling at $1 billion in November. December 2025 saw the target reduced to $800 million, whilst June 2026 marked a significant $2.01 billion injection—comprising $1.2 billion through the Intermediation Programme and additional spot sales—when commercial banks bid for $3.42 billion in total, underscoring strong forex demand.

Market analysts have linked these interventions to the cedi's relatively stronger performance during 2025, suggesting the programme has achieved measurable stabilisation effects. The auctions operate on a competitive, price-based model accessible to all licensed banks, ensuring transparency and market efficiency.

The BoG has committed to continued disclosure of forex operations data, emphasising its transparency approach. Observers will watch August's auction closely to assess whether the $1 billion injection sufficiently addresses energy sector demand and whether cedi weakness moderates in the months ahead.