Cedi Extends Recovery as GoldBod Steps Up FX Sales to Banks

The Ghana cedi has extended its recovery against the US dollar, recording marginal weekly gains for more than three weeks as increased foreign exchange supply from the Ghana Gold Board (GoldBod) helps ease liquidity pressures on the market.

Traders and bank treasurers attribute the cedi’s recent appreciation to GoldBod’s increased dollar sales under its revised foreign exchange intermediation framework, which has improved access to dollars for commercial banks and reduced pressure on the market.

GoldBod sold US$130 million during Tuesday’s spot sale at GH¢11.60 to the dollar, below the prevailing spot market rate at the time. Market participants say the increased supply has eased demand pressures, prompting some banks and traders to reduce their requests for foreign exchange.

The development follows a period of pressure on the cedi in August and early September, when demand for dollars rose partly due to import financing ahead of the Christmas season.

Bank of Ghana Governor Dr. Johnson Asiama, speaking at an engagement with global investors in Bangkok, Thailand, during the IMF and World Bank Annual Meetings, attributed the earlier pressure partly to large payments, particularly in the energy sector, which marginally affected Ghana’s international reserves.

He said the central bank was working with GoldBod to improve liquidity and strengthen reserves while supporting exchange-rate stability.

Under the new framework, GoldBod is expected to generate about US$1.5 billion in foreign exchange receipts, with US$1 billion earmarked for commercial banks and US$500 million allocated to the Bank of Ghana to support reserve accumulation.

Market sources estimate that GoldBod may have supplied more than US$500 million to banks this month.

GoldBod conducts its dollar sales through the GoFX platform every Tuesday and Thursday. Where demand exceeds available supply, allocations are made proportionately to ensure transparent and equitable distribution.

The framework requires participating banks to demonstrate genuine unmet foreign exchange demand or a short position. Transactions settle on the same day, while the Bank of Ghana maintains real-time access to the platform and regulatory oversight.

The electronic system records submissions, allocations and transaction histories, providing an audit trail for verification and accountability.

Some commercial banks expect the cedi to remain relatively stable if the improved dollar supply is sustained, while the Bank of Ghana has maintained its readiness to intervene when necessary to ensure orderly market conditions.