The Bank of Ghana has announced new measures to manage the money supply within the economy. According to the Governor, Dr. Johnson Asiama, these actions are part of ongoing efforts to maintain macroeconomic stability and improve the effectiveness of monetary policy.
During a press briefing following the Monetary Policy Committee’s 123rd regular meeting, Dr. Asiama explained that these measures, which coincide with the BoG’s decision to increase the policy rate to 28.0 percent, include the introduction of a 273-day financial instrument designed to control the circulation of money in the economy.
In addition to this, the Bank of Ghana has implemented three key actions:
- The introduction of a 273-day financial instrument to enhance the bank’s sterilization toolkit, allowing for improved liquidity management.
- A stronger focus on monitoring banks’ net Open Positions (NOPs) to ensure greater oversight and compliance with regulatory standards, thereby reducing risks within the banking sector.
- A review of the Cash Reserve Ratio (CRR) structure to assess its impact on liquidity and financial intermediation, aiming to strike the right balance between stability and economic growth.
The central bank also reaffirmed its commitment to price stability and fiscal consolidation as outlined in the 2025 budget. It stressed that maintaining a tight monetary policy is crucial to prevent excess liquidity from hindering efforts to control inflation.
These measures are intended to stabilize the financial system and protect the economy from potential shocks.
