BoG Adopts 3 Measures To Solve Ghana’s Financial Crisis

The Bank of Ghana has announced three measures in addressing the immediate financing problems of Ghana.

This was after the Monetary Policy Committee of the BoG held an emergency meeting on August 17, 2022.

First, the Central Bank says it has increased the Monetary policy rate by 33 basis points following a decision to keep it at 19.0% after the MPC’s 107th meeting in July.

“Under the circumstances, and considering the risks to the inflation outlook, the Committee decided on a 300 basis points increase in the Monetary Policy Rate to 22 percent”, the BoG noted in a statement.

The second measure is to raise the primary reserve requirement of banks from 12 percent to 15 percent.

This measure, the BoG said, will be implemented in phases.

It will first be increased to 13 percent effective September 1, 2022; 14 percent effective October 1, 2022; and 15 percent effective November 1, 2022.

The last measure announced by the BoG is to purchase all foreign exchange arising from the voluntary repatriation of export proceeds from mining firms and oil and gas companies.

“To boost the supply of foreign exchange to the economy, the Bank of Ghana is working collaboratively with the mining firms, international oil companies, and their bankers to purchase all foreign exchange arising from the voluntary repatriation of export proceeds from mining, and oil and gas companies. This will strengthen the central bank’s foreign exchange auctions.”

Source: opemsuo.com/Hajara Fuseini