BoG Set to Roll Out New Foreign Exchange Operations Framework
The Bank of Ghana has announced a new Foreign Exchange Operations (FX) Framework to guide the activities of operators.
The framework pursues support for reserve accumulation to provide a buffer against external vulnerabilities; dampening excessive short-term volatility in the foreign exchange market; and BoG-intermediate FX flows in a market-neutral manner, using inflows from sources such as the Gold Purchase Programme, or other export surrender requirements.
“This means that the BOG will channel FX inflows into the market in an orderly and transparent way without influencing the exchange rate trend,” it said in a statement on November 11, 2025.
It stated that 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.
“FX 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.”
The framework, it said, will have transparency as a cornerstone with auction amounts to be announced in advance, and results published on the same day.
According to the Central Bank, 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.
In addition, the BOG intends to publish aggregated monthly FX operations data, clearly distinguishing between operational objectives, within five business days after the end of each month on its website.
“This breakdown will help market participants and the public understand the intent behind BOG’s actions and strengthen transparency and accountability.”
Story by Hajara Fuseini
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