The Bank of Ghana (BOG) has introduced a new Foreign Exchange (FX) Operations Framework aimed at clarifying the principles and objectives guiding its interventions in the foreign exchange market.
The announcement comes as part of the central bank’s ongoing efforts to maintain macroeconomic stability while operating under a flexible exchange rate regime.
In a statement dated Tuesday November 11, 2025, the BOG emphasized that the exchange rate will remain market-determined, with interventions focused on supporting stability rather than targeting specific levels.
According to the bank, the new framework will pursue three key objectives. First, it will support reserve accumulation to provide a buffer against external vulnerabilities.
Second, it will dampen excessive short-term volatility in the foreign exchange market by responding to disorderly conditions without undermining exchange rate flexibility.
Third, the BOG will intermediate FX flows in a market-neutral manner, using inflows from programs 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,” the statement said.
The framework emphasizes a rule-based approach that allows exchange rates to be determined by market forces while limiting excessive short-term volatility, which the bank described as “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.”
The BOG further highlighted its commitment to transparency, noting that auction amounts will be announced in advance, with results published on the same day.
“This new FX Operations Framework reflects our commitment to transparency, market confidence, and macroeconomic stability. By clarifying our objectives and processes, we aim to strengthen resilience while preserving the flexibility of Ghana’s exchange rate regime,” the statement concluded.
The Bank of Ghana said the framework is designed to reassure market participants and the public, strengthening confidence in its management of the country’s foreign exchange market while maintaining a flexible, market-driven exchange rate.
