The Bank of Ghana has raised the Monetary Policy Rate by 300 basis points from 19 percent to 22 percent.

The last change in the policy rate was in May 2022.

This development follows a Monetary Policy Committee meeting earlier on Wednesday because of Ghana’s recent economic challenges.

The Bank of Ghana in a statement said it considered risks to the inflation outlook before increasing the policy rate.

In addition, the central bank raised the primary reserve requirement of banks from 12 percent to 15.

This increase is to be done in phases starting from 13 percent from 1st September 2022, 14 percent by 1st October 2022 and 15 percent by 1st November 2022.

To boost the supply of foreign exchange to the economy, the Bank of Ghana said it is working with the mining firms, international oil companies, and their bankers to purchase all foreign exchange arising from the voluntary repatriation of export proceeds from mining, and oil and gas companies.

“This will strengthen the central bank’s foreign exchange auctions,” the central bank stated.

The Ghana Cedi has depreciated by 25.5 percent year to date.