BoG Announces new Net Open Position Limits for Banks to Strengthen FX Risk Management; Effective October 1
The Monetary Policy Committee (MPC) of the Bank of Ghana has announced new Net Open Position (NOP) limits for banks, effective October 1, 2025.
The revised NOP has been adjusted from the existing -/+5% to a tighter band between 0% and -10%. The measure is aimed at strengthening foreign exchange (FX) risk management within the banking system.
Net Open Position limits set the maximum FX risk a bank may assume, representing the gap between foreign currency assets and liabilities. By narrowing the range, the Central Bank seeks to curb excessive speculation, safeguard banks’ capital buffers from currency volatility, and reinforce overall financial stability.
Speaking during the 126th MPC press briefing on Wednesday, September 17, 2025, Governor Dr Johnson Asiama said the banking sector had delivered strong performance over the first eight months of the year, underpinned by asset growth, improved profitability, and stronger efficiency indicators.
The industry’s Capital Adequacy Ratio (CAR), excluding regulatory reliefs, rose to 17.7% in August 2025 from 10.2% in the same period last year. Asset quality also improved, as the Non-Performing Loan (NPL) ratio declined to 20.8% from 24.8% a year earlier, driven by growth in bank credit and a contraction in the stock of NPLs.
Despite these gains, the Governor cautioned that credit risk remains elevated. He underscored that adherence to recapitalisation plans and strict implementation of regulatory guidelines to reduce NPLs will be critical to further strengthening the sector’s resilience.
