The Bank of Ghana has reduced the monetary policy rate by 150 basis points to 14.5 percent as the central bank bids to stimulate the economy and shield the impact of COVID19.
In addition to cutting the policy rate, the BoG in a move to promote the use of Digital money transfer platforms announced that mobile money charges on transfers up to GHS100 will now be free.
“All mobile money users can send up to GH₵100 for free (excluding cash out). This includes sending to a recipient on the same network, or another network via the interoperability platform,” a statement from the central bank said.
The BoG also disclosed that daily thresholds for various mobile money wallets have also been increased.
These will take effect on March 20, 2020.
The Central Bank also revealed that “the Primary Reserve Requirement has been reduced from 10 percent to 8 percent to provide more liquidity to banks to support critical sectors of the economy.”
The Bank of Ghana explained that the new measures were agreed in consultation with the mobile network operators.
“The Bank of Ghana has agreed with banks and mobile network operators on measures to facilitate more efficient payments and promote digital forms of payments for the next three months, subject to review, effective March 20, 2020.”
The statement from the Bank of Ghana added that the central bank is closely monitoring development with regards to the impact of the COVID-19 outbreak and won’t hesitate to “convene an emergency meeting to deliberate on other measures if required.”
Story by Naa Anyema Collison