Bank of Ghana study examines cedi stability and forex auctions

A Bank of Ghana working paper has analyzed the effectiveness of foreign-exchange auctions in stabilizing the cedi, concluding that auctions cannot resolve an underlying shortage of foreign exchange. The study, authored by Gershon K. Agbledzorwu, notes that when the supply of dollars offered is significantly lower than market demand, auctions may actually reveal the extent of the shortage and drive buyers toward higher exchange rates in the wider market.

Evidence from wholesale spot auctions between November 2016 and March 2017 showed that despite the Bank of Ghana selling US$248.75 million, demand reached US$694.50 million. These auction periods were accompanied by sharp cedi depreciations due to tight forex liquidity.

In recent market movements for late September 2026, the cedi showed mixed performance. The currency weakened slightly against the US dollar, with the mid-rate rising to GH¢11.6157, but gained ground against both the British pound and the euro.