The Bank of Ghana has reinstituted a policy that mandates banks to hold foreign currency deposits in Ghanaian cedis. This decision reverses a change made in June 2025 and will become effective on June 4, 2026. This adjustment was decided at the Bank of Ghana's Monetary Policy Committee meeting on Wednesday, May 20, 2026.
This returned policy means that for every US dollar deposited, banks must hold its equivalent value in cedis as reserves at the central bank. The previous management of the Bank of Ghana had abolished this rule in June 2025. At that time, they introduced a currency-matched Cash Reserve Ratio. This meant foreign currency deposits had to be backed by reserves in the same foreign currency. Cedi deposits were similarly backed by cedi reserves. The stated reason for the 2025 change was to fix what the central bank called an 'asset-liability mismatch'.
The original policy of holding forex reserves in cedis was first introduced in November 2023. The goal was to tighten the amount of money circulating in the economy and control inflation. The Bank of Ghana stated then that this move aimed to manage inflation and foreign exchange at a low cost. Ghana's economy has faced challenges with currency depreciation and inflation in recent years. The International Monetary Fund (IMF) has been actively involved in supporting Ghana's economic stabilization efforts.
Experts in the financial sector have suggested that the currency-matched CRR system that was in place for the past year proved to be costly. They believe it significantly contributed to the Bank of Ghana’s reported losses in 2025. Dr. Johnson Pandit Asiama, the Governor of the Bank of Ghana, has not made a direct public statement on the specific reasons for this latest reversal as of the source's publication date. However, historical data shows the BoG has a history of adjusting CRR to manage liquidity.
This policy shift has important implications for banks. It will affect how they manage their foreign currency holdings and their liquidity positions. The decision could also influence the availability of foreign currency for businesses and individuals. Investors and analysts will be watching closely to see the impact on the Ghanaian cedi’s stability and overall monetary policy effectiveness. The Bank of Ghana's actions are often closely scrutinized by markets for signs of its economic management strategy.