The Bank of Ghana (BoG) has implemented a revised approach for calculating its Foreign Exchange (FX) Market Reference Rate (MRR) in accordance with global best practices.
This change aims to provide a more accurate reflection of current market trends.
“The new methodology seeks to broaden the data coverage and reflect daily transactions executed between commercial banks and their clients”, a statement from the BoG said.
The statement clarified that this modification marks the initial phase of the Bank of Ghana’s long-term plan to align its MRR methodology with the International Organization of Securities Commissions (IOSCO) Principles of Financial Benchmarks. It also noted that the daily reference rate published on the Bank of Ghana’s website will be derived from data provided 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”.
“The data submitted is used to compute the weighted median exchange rate. The weighted median exchange rate will be published on the Bank of Ghana website, as the closing rate for the day’s transactions”, the statement concluded.