The Bank of Ghana (BoG) has announced the introduction of a new methodology for computing the Foreign Exchange Market Reference Rate (MRR). In a statement signed by the Secretary of the Bank, Sandra Thompson, the BoG explained that the change aligns the Bank with international best practices and brings the MRR methodology closer to the standards set by the International Organization of Securities Commissions (IOSCO).

The new methodology as outlined in the statement is as follows:

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 3.30pm. 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 public is encouraged to direct any inquiries regarding the new MRR to the Financial Markets Department of the Bank of Ghana.

Contact Information:
The Head,
Financial Markets Department,
Bank of Ghana,
1 Thorpe Road,
Accra.

Cover Photo credit: The Ghana Report