Bank of Ghana rolls out structured auction system for dollar interventions
The Bank of Ghana has introduced detailed new guidelines to govern its foreign exchange spot interventions, signalling a more structured and transparent approach to managing volatility in the cedi without targeting a fixed exchange rate.
In a public notice, the central bank said the framework would follow a “structured discretion-under-constraint approach”, stressing that interventions “do not target a specific exchange rate level but rather address market failures”.
The guidelines make clear that while the exchange rate will continue to be determined by market forces, the central bank will act to moderate sharp fluctuations. The Bank explained that the rule-based system would allow the exchange rate to be market-driven “while limiting excess short-term volatility – but not eliminating it”.
Foreign exchange spot interventions, the notice stated, form part of the Bank’s broader foreign exchange operations framework, alongside reserve accumulation and foreign exchange intermediation. The document underscored that “All participants shall be expected to fully abide by the following rules.”
Under the new regime, the Bank will announce an intervention auction when market conditions fall within a defined intervention region. Such announcements may be made either on the same day or a day in advance and will be published via the LSEG Workspace Auctions platform and Refinitiv FXT. Each announcement will specify the target intervention volume and other relevant details.
Participation in the auctions is restricted to authorised licensed foreign exchange dealing banks. The interventions will be conducted strictly in United States dollars against the Ghana cedi on a spot basis. Bids must quote rates in cedi per dollar, expressed to four decimal places, for example 10.0000.
The Bank has capped participation to prevent concentration risk. Each bank may submit up to three bids, with a minimum bid size of 500,000 dollars and in multiples of 250,000 dollars. Crucially, the cumulative volume of bids from a single bank must not exceed 20 per cent of the announced auction target. Bids that are incomplete, submitted late or missing required information will be rejected, and “Each bid is final and is irrevocably binding on the bidding bank.”
The auctions will follow a multiple-price, fixed-volume format. For foreign exchange buy auctions, bids will be arranged from the lowest to the highest rate and allocated in ascending order until the target volume is reached. For sell auctions, bids will be ordered from the highest to the lowest rate and allotted in descending order. Where several bids are submitted at the same rate, allocations will be prorated among the tied bids.
Results of each auction will be published via LSEG Workspace Broadcast and shared by email no later than 2pm on the day of the auction. Settlement will take place on a T+2 basis, with trades confirmed and executed through the Refinitiv platform. In the event of operational challenges, the Bank said its dealers would communicate directly with successful banks through the Refinitiv conversational dealing system to facilitate settlement.
The central bank also reminded participating institutions to comply strictly with foreign exchange exposure limits under its Net Open Position guidelines, as well as the provisions of the Foreign Exchange Act 2006 (Act 723) and the Ghana Interbank Forex Market Conduct rules.
Reserving flexibility, the Bank stated that it “reserves the right to revise, amend, or supplement these rules as it deems appropriate, taking into account operational considerations, regulatory requirements, and prevailing circumstances.”
The guidelines, signed by the Acting Secretary, Ms Aimee Vyda Quashie, and dated February 10, 2026, represent the latest step in the Bank’s efforts to deepen transparency and strengthen confidence in the management of Ghana’s foreign exchange market, at a time when stability in the cedi remains central to inflation control and broader macroeconomic recovery.