File photo of cedi and dollar notes
The Bank of Ghana (BoG) has introduced a new set of guidelines to govern its foreign exchange interventions in a bid to manage market volatility toward a targeted exchange rate band.
Forex volatility refers to how much and how quickly a currency’s value changes compared to another currency over time.
In a statement issued on February 10, 2026, the central bank clarified that the guidelines do not target a specific exchange rate level but are rather intended to address market shortfalls.
The BoG explained that the rule-based system would allow the exchange rate to remain market-driven while limiting excessive short-term volatility.
Under the new regime, the Bank will announce an intervention auction when market conditions fall within a defined intervention region.
BoG unveils new FX operations framework
The Bank has capped participation to prevent concentration risk. Each bank may submit up to three bids, with a minimum bid size of US$500,000 and in multiples of US$250,000.
The BoG said it shall announce an FX intervention auction when conditions fall within the defined intervention region.
“The FX intervention shall be announced either on the same day or one day in advance, depending on the timing of the decision. The announcement shall be published via LSEG Workspace (Refinitiv) Auctions platform and Refinitiv FXT. The announcement shall indicate the FX intervention volume target and other relevant information”, the statement said.
The central bank also reminded participating institutions to comply strictly with foreign exchange exposure limits under its Net Open Position guidelines, as well as the provisions of the Foreign Exchange Act 2006 (Act 723) and the Ghana Interbank Forex Market Conduct rules.
SP/MA
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