Accra: The Bank of Ghana has staged a dramatic U-turn on its decision to jettison the previous government's policy of keeping the Cash Reserve Ratio (CRR) on Forex in Cedis. The decision was taken at the Bank of Ghana's Monetary Policy Committee meeting held on May 20, 2026, and the reversed measure is to take effect on June 4, 2026.
According to Ghana Web, the previous management of the BoG, under the erstwhile NPP administration, announced in November 2023 a unified 15% CRR on both cedi and foreign currency deposits, with all reserves mandated to be held in cedis. The Central Bank, at the time, stated that the move was aimed at controlling inflation and maintaining the forex at a low cost.
However, in June 2025, the BoG, under the new NDC government, scrapped the policy and announced a currency-matched CRR. This meant foreign currency deposits had to be backed by reserves held in the same foreign currency, and cedi deposits were also to be backed by cedi reserves. Despite the main reason for the switch being to address what the central bank described as an asset-liability mismatch under the previous arrangement, it has now returned to the policy it scrapped only a year ago.
Experts have noted that the currency-matched CRR, introduced by the new Bank of Ghana management a year ago, has been financially burdensome and has contributed significantly to the Bank of Ghana's substantial losses in 2025. Unlike the previous arrangement under the former government, which experts regarded as a low-cost liquidity and inflation management measure, the currency-matched CRR has been viewed as a costly measure. This approach has led to considerable financial challenges for the Bank of Ghana just a year after its introduction.