BoG FX rate to reflect market developments more accurately with new methodology

In line with international best practices, the Bank of Ghana (BoG) has introduced a new methodology for computing its Foreign Exchange Market Reference Rate (MRR).

This change aims to ensure that the BoG rate more accurately reflects market developments.

The new methodology seeks to broaden data coverage and reflect daily transactions executed between commercial banks and their clients.

In a press release copied to GhanaWeb Business, the central bank said "this change is the first step in the Bank of Ghana’s long-term strategy to align its MRR methodology with the International Organization of Securities Commissions (IOSCO) Principles of Financial Benchmarks."

It further said, "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 3.30 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," it added.

The submitted data will be used to compute the weighted median exchange rate, which will be published on the Bank of Ghana website as the closing rate for the day’s transactions.



SA/MA

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