The Bank of Ghana (BoG) is reportedly set to purchase as much as US$500m of foreign exchange directly from international mining and oil companies by the end of the year as authorities seek to shore up its reserves.
According to sources close to the matter, the BoG raised more than US$20m within a week of announcing on 17 August. Furthermore, it will “work collaboratively” with the natural-resource exporters to boost its foreign-currency holdings. While the BoG’s plan is not yet clear, central banks that buy foreign currency from exporters usually sterilize those flows by selling local currency bonds in the market.
Ghana is facing a shortage of dollars after it lost access to international markets, and the BoG has been looking for ways to boost its foreign-exchange holdings, which have fallen by more than 20 percent since the start of the year to US$7.7bn in June, and to support a weakening cedi.