The Ghanaian cedi is facing renewed depreciation pressure as demand for the US dollar continues to outpace supply, prompting the Bank of Ghana (BoG) to roll out another round of foreign exchange auctions worth up to $1 billion in August 2026.

The planned intervention, which will be undertaken through the central bank’s Forex Intermediation Programme, is expected to provide much-needed dollar liquidity to licensed commercial banks and help stabilise the local currency amid growing demand from businesses.

According to the Bank of Ghana, the auctions will be held every two weeks under the central bank’s Foreign Exchange Operations Framework.

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The central bank said the exercise forms part of efforts to operationalise the framework while supporting its reserve accumulation programme.

The BoG maintains that the Forex Intermediation Programme is intended to reduce excessive volatility in the foreign exchange market, particularly through activities linked to the Domestic Gold Purchase Programme.

The latest intervention comes as businesses continue to report difficulties accessing foreign exchange, with demand for dollars exceeding available supply in parts of the banking sector.

Market sources attribute the pressure largely to increased foreign exchange requirements from energy sector operators financing crude oil imports, refined petroleum products and payments to power producers. Others also point to limited dollar liquidity relative to growing demand from the business community.

Despite the renewed pressure on the cedi, the Bank of Ghana has assured businesses that there is no cause for alarm, describing the recent developments as temporary market movements.

The central bank insists it remains well-positioned to provide support whenever necessary to ensure critical imports are not disrupted.

The August auctions follow similar foreign exchange support measures implemented in July 2026. According to the BoG, those operations were conducted on a market-neutral, spot basis through twice-weekly competitive auctions open to all licensed commercial banks.

The central bank also disclosed that the cedi had recorded a cumulative depreciation of 10.61% by the end of July 2026.

During the same period, average daily trading on the interbank foreign exchange market stood at $22.64 million, bringing the month’s total trading volume to $498 million.

Although Ghana’s international reserves have declined to slightly above $12 billion, the Bank of Ghana has reaffirmed its commitment to maintaining transparency in its foreign exchange operations and said it would continue to publish information on activities under the Forex Intermediation Programme.

It also clarified that there was no direct market intervention in July.

The revised Forex Intermediation Programme was introduced in September 2025 with an initial auction target of $1.1 billion.

The allocation increased to $1.3 billion in October before being adjusted to $1 billion in November, all of which was fully sold.

The target was later reduced to $800 million in December, with the competitive spot auctions continuing to serve as one of the Bank’s key tools for managing liquidity in the foreign exchange market.

ANAS/MA