BoG Reduces Primary Reserve Requirement to Support Economy

Source: Ghana Web

The Bank of Ghana has announced a raft of measures aimed to contain the economic impact of the COVID-19 on the economy and to enhance access to credit.

Consequently, the Bank had reduced the Primary Reserve Requirement from 10 percent to eight percent to provide more liquidity to banks to support critical sectors of the economy.

“This effectively extends the previous targeted reserves for SMEs under the enterprise credit scheme to all critical sectors,” the Bank said in a statement after a meeting of the Monetary Policy Committee.

The Bank also lowered the Capital Conservation Buffer (CCB) for banks of 3.0 percent to 1.5 percent to enable banks provide the needed financial support to the economy.

“This effectively reduces the Capital Adequacy Requirement from 13 percent to 11.5 percent,” it said.