The International Monetary Fund (IMF) and the Bank of Ghana (BoG) have completed technical drafting of a rule-based foreign-exchange intervention framework, a structural benchmark required for the successful conclusion of the Fifth Review under Ghana’s US$3 billion Extended Credit Facility.
Speaking exclusively to Channel One TV’s Point of View, IMF Resident Representative Dr Adrian Alter confirmed that the new regime will be submitted to the BoG Board for approval on 18 November and will take effect on 1 December 2025.Core Design Features
- Published intervention corridors: Daily cedi movements will be capped within a pre-announced ±2 % band, with triggers disclosed quarterly.
- Escrow window for Gold Board purchases: All domestic gold proceeds (projected US$5.1 bn in 2026) will flow through a ring-fenced BoG account, eliminating discretionary liquidity injections.
- Reserve accumulation rule: A minimum of 70 % of net FX inflows will be allocated to gross international reserves until the 5.5-month import-cover target is met.
Governance and Disclosure
- Intervention logs, including volumes and counterparties, will be released on the BoG website within five business days.
- Deviations from the corridor will require a signed explanatory note from the Governor, published within 48 hours.
- An independent annual audit by PricewaterhouseCoopers will verify compliance.
The framework addresses long-standing market concerns over opaque BoG auctions, which totalled US$3.8 billion in 2025 and contributed to intermittent parallel-market premiums of up to 8 %. By replacing discretionary sales with algorithmic triggers, the Central Bank aims to restore full pass-through of global price signals while protecting reserves.Macroeconomic Impact
- Cedi volatility: Expected to decline from 1.9 % (30-day rolling) to below 1.2 % by Q2 2026.
- Reserve cover: Projected to reach 5.7 months of imports by end-2026, up from 4.8 months in September 2025.
- Investor sentiment: Bloomberg’s Ghana FX Volatility Index fell 12 % within hours of Dr Alter’s disclosure.
Next Steps
- 11 Nov: Monetary Policy Committee briefing
- 18 Nov: BoG Board endorsement
- 25 Nov: Publication of inaugural intervention corridor
- 1 Dec: First live operation
The framework will be accompanied by a joint BoG–IMF public-awareness campaign, including town-hall sessions for forex bureaux and a dedicated portal on www.bog.gov.gh/fx-framework.
