BoG signals no FX intermediation for October as GoldBod plans $1bn support for banks

The Bank of Ghana (BoG) has indicated that it does not plan to implement a foreign exchange (FX) intermediation program in October 2026. This decision stems from a revised agreement concerning foreign exchange receipts from the artisanal and small-scale mining sector.

Despite the BoG's lack of an October intervention program, it remains prepared to step in if necessary to maintain orderly market conditions while preserving exchange rate flexibility. Although no official reason has been provided for the absence of the October FX intervention, market observers speculate that the Ghana Gold Board (GoldBod) is planning to support the FX market with funds generated from gold exports.

In September, GoldBod anticipated generating approximately US$1.5 billion in foreign exchange, with US$1 billion earmarked for commercial banks to support stability in the FX market. An additional US$500 million from this amount will be directed to the Bank of Ghana to bolster reserve accumulation in line with the Ghana Accelerated National Reserves Accumulation Policy (GANRAP).

These transactions are anticipated to be executed under GoldBod’s new Spot FX Sales/Intermediation Framework, which aims to enhance transparency, fairness, and regulatory compliance. Reports suggest that the BoG is now placing greater emphasis on rebuilding its reserves due to recent pressures on the cedi and developments in the Middle East. This comes after Ghana's gross international reserves declined to over US$12 billion in August 2026.

In September, the BoG targeted US$500 million for its FX intermediation program, executing the sales at a market-neutral rate on a spot basis through twice-weekly auctions to all licensed commercial banks. The BoG also communicated to banks that there were no direct interventions during September 2026.

The cedi's performance in September reflected a cumulative depreciation of 10.76% by month-end, trading at GH¢11.71 per US dollar. The average daily trading volume on the interbank FX market was US$23.71 million, and the total monthly interbank trading volume amounted to US$497 million. These developments follow the BoG and GoldBod's adjustments to their foreign-exchange liquidity management approaches, with GoldBod expected to channel a significant portion of its gold export revenues into the market in October.