Core Insights - The Bank of Ghana (BoG) has injected approximately $10 billion into the foreign exchange market since January 2025 to stabilize the cedi exchange rate, part of a broader strategy to meet dollar demand rather than solely defending the cedi [1] - The funding for this intervention comes from unexpected gains from the domestic gold purchasing program, which has not utilized the central bank's foreign exchange reserves [1] - As of December 2024, Ghana's international reserves stood at $9.1 billion, increasing to $11.4 billion by October 2025, with projections suggesting reserves may exceed $12 billion by year-end [2] - The cedi appreciated by 13.9% against the dollar by the end of October 2025, with a year-to-date increase of 32.2% [2] - The BoG has approved a new foreign exchange business framework aimed at guiding its foreign exchange operations, reinforcing its commitment to macroeconomic stability under an inflation-targeting regime [2] - The new framework aims to support reserve accumulation, reduce excessive short-term volatility in the foreign exchange market, and facilitate market-neutral foreign exchange flows [2][3] - Future foreign exchange interventions will follow a "discretionary under structured constraints" approach, ensuring that interventions do not target specific exchange rate levels but address market failures [3]