In accordance with international best practices, the Bank of Ghana (BoG) has rolled out a new approach for calculating its Foreign Exchange Market Reference Rate (MRR).
This adjustment is designed to provide a more accurate representation of market conditions.
The updated methodology aims to expand data coverage and capture daily transactions conducted between commercial banks and their customers.
In a press release copied to GhanaWeb Business, the central bank said “this change is the first step in the Bank of Ghana’s long-term strategy to align its MRR methodology with the International Organization of Securities Commissions (IOSCO) Principles of Financial Benchmarks.”
It further said, “the reference rate published every day on the Bank of Ghana website will be computed from data submitted by all banks. Each working day, all banks submit data on all spot US$/GH₵ transactions concluded on the reporting day before 3.30 pm.”
“The data will cover all spot transactions on the interbank markets as well as transactions with their clients that have nominal values of US$10,000 or more, mutually reflective of prevailing market conditions,” it added.
The provided data will be utilized to calculate the weighted median exchange rate, which will be made available on the Bank of Ghana’s website as the closing rate for daily transactions.