IERPP questions US$18bn Bank of Ghana forex interventions and 24-Hour Economy funding

The Institute of Economic Research and Public Policy (IERPP) is raising questions about the magnitude of Ghana's foreign exchange interventions, suggesting that the claimed US$18 billion could have significant drawbacks for the economy. The Bank of Ghana reportedly used about US$10 billion to support the cedi in 2025, with a further US$8 billion deployed between January and August 2026, reaching a cumulative total of about US$18 billion.

In a statement on August 12, IERPP compared this figure to the government's estimated US$4 billion financing need for the 24-Hour Economy policy, which could generate around 1.7 million jobs. The institute inquired, "Why should Ghana spend approximately US$18 billion to stabilize the cedi while a portion of that could potentially finance a large-scale productive-sector intervention creating millions of jobs?"

While not opposing such interventions meant to stabilize the cedi, IERPP argues that policymakers should scrutinize the scale, sustainability, and opportunity costs of these repeated large-scale interventions. The institute emphasizes that the question isn't whether the cedi needs support but whether the scale, sustainability, and opportunity costs of such interventions are properly scrutinized.

Pointing out that the reported US$18 billion is about four and a half times the US$4 billion required for the 24-Hour Economy, IERPP advocates for increased investment in manufacturing, agro-processing, logistics, tourism, technology, and other productive sectors to foster job creation, increased exports, and more foreign exchange generation.

They are pushing for the Bank of Ghana and government to disclose details on the reported US$18 billion in interventions, including the exact amounts used, sources of foreign exchange, mechanisms employed, and the impact on the cedi and Ghana's gross international reserves. IERPP also seeks an assessment of the interventions' long-term sustainability and greater clarity on the US$4 billion financing requirement for the 24-Hour Economy, which includes the sectors and regions it intends to benefit, as well as safeguards against inefficient public spending.

The institute posits that Ghana's long-term goal should be building an economy that generates sufficient foreign exchange through production and exports, rather than relying heavily on interventions to defend the currency. "Ghana needs a policy framework that not only defends the Cedi today but builds an economy capable of supporting the Cedi tomorrow," IERPP concluded.