The Bank of Ghana (BoG) has introduced a new methodology for calculating its Foreign Exchange (FX) Market Reference Rate (MRR).
The new methodology introduced is in line with international best practices to better reflect market conditions.
The new approach, according to the bank, will expand data coverage by incorporating daily transactions between commercial banks and their clients.
The Central Bank, in a statement, said the new methodology forms part of a broader strategy to align its MRR methodology with the International Organisation of Securities Commissions (IOSCO) Principles of Financial Benchmarks.
“The new methodology seeks to broaden the data coverage and reflect daily transactions executed between commercial banks and their clients,” the BoG announced in a statement.
According to BoG, the reference rate, which is published daily on the BoG website, will now be derived from data submitted by all banks.
Each working day, banks report all spot US$/GH¢ transactions executed before 3:30 p.m., including interbank transactions and client deals with nominal values of US$10,000 or more, the statement added.
By: Rainbowradioonline.com/Ghana
