Core Viewpoint - The Bank of Ghana has introduced a new foreign exchange operation framework aimed at enhancing transparency, boosting market confidence, and ensuring stability in the foreign exchange market [2][3] Summary by Relevant Sections New Framework Objectives - The new framework outlines three core objectives for the Bank of Ghana's foreign exchange operations: 1. Reserve accumulation to build a strong buffer against external risks 2. Volatility management to reduce excessive short-term fluctuations without fixing the exchange rate 3. Market-neutral mediation to transparently guide foreign exchange inflows, including funds from gold purchase programs and export payment requirements, without affecting currency trends [2] Operational Characteristics - The framework will employ a rules-based, transparent market operation approach, including competitive, floating-rate, fixed-amount auctions for foreign exchange transactions to ensure efficiency and fairness - Auction amounts will be announced in advance, and results will be published on the same day [2] Accountability and Transparency - To enhance accountability, the central bank will publish a summary of monthly foreign exchange operation data within five working days after the end of each month, detailing the objectives of various operations - This initiative is expected to provide market participants and the public with clearer insights into the Bank of Ghana's decision-making, thereby boosting confidence in the foreign exchange market [3] Context and Performance - The introduction of the new framework coincides with the Ghanaian cedi becoming one of the best-performing currencies in sub-Saharan Africa, attributed to prudent policy management and sustained foreign exchange inflows [3]