The Bank of Ghana (BoG) has clarified that its reported US$10 billion forex support to the foreign exchange market in 2025 should be understood as market intermediation rather than direct liquidity injection.
The approach, according to the Central Bank, helped stabilise the Cedi while strengthening foreign reserves.
The clarification was provided during a sitting of Parliament’s Public Accounts Committee (PAC) as the Committee examined the Auditor-General’s reports on the Public Accounts of Ghana.
Responding to questions on forex liquidity, the Head of Financial Markets at the Bank of Ghana, Nii Sowah Ahulu, explained that improved reserve levels and reforms in foreign exchange operations enabled the Bank to play a stabilising role in the market.
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“Our core functions are to build up reserves, ensure we have sufficient buffers to manage volatility, and intermediate in a neutral way so that movements in the FX market do not transmit instability to the broader macroeconomy,” he said.
He noted that compared to 2024, the Bank undertook significantly higher intermediation in 2025, contributing to currency stability and appreciation.
Mr. Ahulu estimated that total support to the FX market in 2025 was close to US$10 billion. He explained that the operations had an equivalent impact of approximately GH¢15 billion in cedi liquidity withdrawal, based on an average exchange rate of GH¢10.5 to the dollar.
“Supporting the market effectively means a withdrawal of cedi liquidity,” he said.
However, Governor Dr. Johnson Pandit Asiama was quick to caution against interpreting the figure as direct intervention.
“We have to correct the impression that we pumped US$10 billion into the market. The word we use is intermediation,” the Governor stated.
He explained that the amount includes payments made to Independent Power Producers (IPPs) to avert power disruptions, as well as foreign exchange outflows to bondholders.
“All these flows form part of the total figure. At the same time, we were building reserves,” Dr. Asiama added.
Mr. Ahulu further explained that the Bank’s forex market operations supported multiple sectors, including manufacturing, commerce, finance, and the energy sector, rather than being targeted solely at currency trading.
“The amount involved is the overall support provided to the various sectors of the economy for the year,” he said.
The PAC also raised questions about claims that 39.4 tonnes of gold previously lost to smuggling had been formalised through official aggregation channels.
Responding, Dr. Asiama said the Bank could not immediately verify the source of the figure but confirmed a notable improvement in gold aggregation between 2024 and 2025.
“What we are certain about is that there has been a significant increase in aggregation. We emphasise responsible mining practices, and we do not have evidence to the contrary at this stage,” he said.