The Financial institution of Ghana has made a dramatic change of route with its resolution to scrap the earlier authorities’s coverage of sustaining the CRR (Money Reserve Ratio) in overseas trade on the Cedi.
The choice was taken on the Financial institution of Ghana Financial Coverage Committee assembly held on Wednesday, Might 20, 2026, and the rescinded measures are anticipated to return into drive on June 4, 2026.
As a part of liquidity tightening and inflation management measures, the central financial institution’s former administration introduced that the CRR for each cedi and overseas foreign money deposits can be unified at 15% in November 2023, making it necessary for all reserves to be held in cedi.
The central financial institution mentioned on the time that the transfer was aimed toward controlling inflation and foreign money trade charges at low price.
Nonetheless, in June 2025, the central financial institution abolished this coverage and introduced foreign money matching CRR. Which means that overseas foreign money deposits have to be backed by reserves held in the identical overseas foreign money and cedi deposits are additionally backed by cedi reserves.
Though the principle purpose for the change was to right what the central financial institution described as an asset-liability mismatch below the earlier association, it returned to insurance policies it had scrapped only a yr earlier.
Specialists say the currency-matched CRR launched a yr in the past by the Financial institution of Ghana’s new administration was pricey and contributed considerably to the Financial institution of Ghana’s losses in 2025.
