The Bank of Ghana is expected to withdraw more than GHS16.0 billion from the banking system following changes to the Cash Reserve Ratio (CRR) policy, according to IC Insights.

The move comes after the central bank unexpectedly replaced the dynamic CRR framework with a uniform reserve requirement of 20.0% for all banks, effective June 4, 2026.

Under the new directive, banks will now be required to maintain their reserves entirely in cedis, reversing a policy introduced about a year ago that allowed reserves to be matched with the currency of deposits.

IC Insights believes the latest policy shift could increase demand for the cedi in the interbank market as banks adjust their liquidity positions over the next two weeks to meet the new requirement.

The firm also noted that the policy may provide short-term relief for the exchange rate by reducing pressure on the cedi, although rising energy import bills could still weigh on the local currency.

According to IC Insights, the policy is part of the Bank of Ghana’s broader effort to tighten liquidity conditions in the economy.

“Banks will now need to convert foreign currency reserves into cedi reserves,” the report explained.

Based on the value of foreign currency deposits as of April 2026, IC Insights estimates that the central bank could absorb over GHS16.0 billion into unremunerated reserves while simultaneously releasing about US$1.4 billion from existing foreign currency reserve holdings.

The report added that the policy could also help the Bank of Ghana reduce its sterilisation costs by lowering banks’ appetite for Open Market Operation securities.

However, the new CRR regime is expected to increase pressure on some banks, particularly those with large foreign currency deposits but limited cedi liquidity.

IC Insights warned that such banks may face higher operating costs because any depreciation of the cedi would require them to hold more local currency reserves against their foreign currency deposits.

The report specifically mentioned Societe Generale Ghana as one of the banks likely to be affected. The bank previously benefited from a lower CRR of 15.0% due to its high loan-to-deposit ratio but will now be subject to the new 20.0% requirement.

Analysts say the tighter reserve rules could reduce banks’ deployable funds for lending and investments, potentially affecting profitability across the sector.