The Bank of Ghana (BoG) will likely retrieve more than GHS 16 billion from the banking system. The central bank implemented a new Cash Reserve Ratio (CRR) requirement, aiming to tighten cedi liquidity. This change also releases US$1.4 billion from the CRR.
This significant financial maneuver is expected to create strong demand for the Ghana cedi among banks. They must adjust their cash reserves to meet the new rules within the next two weeks. IC Insights forecasts that this will help reduce pressure on the cedi's exchange rate in the short term. However, this projection excludes the effect of higher energy import costs.
This policy adjustment fits into a broader strategy by the Bank of Ghana to manage the country's monetary supply and stabilize its currency. Ghana recorded a US$4.2 billion trade surplus in the fourth quarter of 2025, showing improved external trade conditions. Despite this, the cedi has faced ongoing pressure, prompting the central bank to intervene with measures like the updated CRR. The change could also reduce the central bank's expenses related to Open Market Operation securities.
IC Insights stated, "From a monetary policy perspective, we believe the BoG seeks to deploy this measure to further tighten cedi liquidity as banks will now need to convert foreign currency reserves into cedi reserves." This statement highlights the central bank's goal to strengthen the cedi. Based on foreign currency deposits in April 2026, experts estimate the BoG will mop up GHS 16 billion. This simultaneously releases US$1.4 billion currently held in CRR.
The new CRR regime, effective June 4, 2026, changes from a dynamic system to a uniform 20.0% for all banks. It rolls back a previous rule that matched the reserve currency with the deposit currency. Now, banks must hold reserves in Ghana cedis for all deposits. This decision will particularly affect banks with large foreign currency deposits, increasing their costs. Banks like Societe Generale Ghana, which previously benefited from a lower 15.0% CRR due to high loan-to-deposit ratios, will now face a higher 20.0% requirement. This will likely reduce the amount of money banks can lend and may impact their profits. Observers will watch how this affects interbank lending rates and the overall stability of the cedi.