The Bank of Ghana has reduced the size and frequency of its foreign exchange intervention in the forex market. This decision comes after the Centra
The Bank of Ghana has reduced the size and frequency of its foreign exchange intervention in the forex market.
This decision comes after the Central Bank intervened heavily in the second quarter of 2025, selling over $2 billion, which raised concerns with the International Monetary Fund.
The IMF urged the regulator to proceed with caution.
Impact On Forex Market
As of July 29, 2025, the total foreign exchange forward sales stood at $822.8 million, a 53.6% decrease from June 2025.
The Bank of Ghana was absent from the market on July 25 and 29, 2025, resulting in a tighter forex supply and a 1.7% depreciation of the Ghana cedi against the US dollar.
Future Projections
IC Research expects the Bank of Ghana to continue gradually reducing its presence in the forex market.
This could lead to a non-disruptive increase in the interbank US dollar-Ghana cedi rate to between GH¢10.45 and GH¢11.45 per dollar by the end of 2025.
The research firm also notes that the Real Effective Exchange Rate appreciation suggests a likely corrective depreciation ahead.
Current Exchange Rates
The Ghanaian cedi has appreciated sharply in the first half of 2025, creating multiple foreign exchange rates.
The interbank rate is currently around mid-GH¢10:80 per US dollar, while the retail rate is quoted around GH¢12 per US dollar. IC Research believes this disparity will likely lead to a modest depreciation of the cedi.
Background
The sharp appreciation of the real exchange rate began in April 2025 and deepened in the subsequent two months.
According to IC Research, Ghana’s foreign exchange trend suggests a sharp appreciation of the real exchange rate, with the REER index declining by 31.3% in six months of 2025 to 92.7 percentage points in June 2025.
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