Coronavirus: Primary reserve requirement reduced to 8 percent to provide money for banks

Following examples of how central banks across the world are dealing with global economic trends, amidst the outbreak of the novel coronavirus (COVID-19), the BoG has cut primary reserve requirement by 2 percentage points to provide more liquidity to banks to support critical sectors of the economy.

Additionally, the Bank of Ghana (BoG) has lowered the country’s Monetary Policy Rate by 150 basis points to 14.5 percent.

This follows some significant development in the global financial markets, causing a sharp downturn of global stock prices and a steep rise in emerging markets’ sovereign bond spreads.

“These unfolding developments have further worsened the pre-existing weaknesses in global growth and caused major disruptions to global supply chains with adverse implications for the global economy.”

More soon…

 

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