What the Bank of Ghana interbank rate is

The Bank of Ghana publishes a reference rate for the dollar each working day. It is computed from spot dollar-cedi transactions that banks report, including client deals above a size threshold. The rate is published as a weighted median, with buying, selling and mid prices. This page explains how it is built and why a bank's counter rate differs from it.

A rate built from reported deals

The interbank rate is not set by a committee. It is computed from actual spot dollar-cedi transactions that banks report to the Bank of Ghana. Only deals above a size threshold are included, so small retail exchanges do not move the rate.

The rate is published once each working day. It reflects the deals reported up to a cut-off time, not every deal in the market. A deal done after the cut-off will appear in the next day's rate.

A weighted median, not an average

The Bank of Ghana uses a weighted median. Each reported deal is weighted by its size, so a large transaction moves the median more than a small one. A simple average would give equal weight to every deal, which could be distorted by a few tiny trades.

The weighted median is robust. It is the rate at which half the reported volume was done at a higher price and half at a lower price. It is a common way to summarise a market.

Buying, selling and mid prices

The Bank of Ghana publishes three prices: the buying rate, the selling rate, and the mid rate. The buying rate is what banks pay for dollars; the selling rate is what they charge. The mid rate is the average of the two.

The mid rate is the reference most often quoted. It is a single number that summarises the market. The buying and selling rates show the spread, which is the cost of trading.

Why a bank's counter rate differs

A bank's counter rate is the price it quotes to a customer. It is not the same as the interbank rate because the bank adds its own costs and margin. A bank must cover its overheads and make a profit, so it buys dollars at the interbank buying rate and sells them at a higher counter rate.

The counter rate also depends on the customer and the amount. A large corporate client may get a rate close to the interbank; a small retail customer will pay more. The bank's own position in dollars also matters: if it is short of dollars, it may raise its selling rate.

The rate is a reference, not an offer

The interbank rate is a benchmark. It is not a price at which anyone can buy dollars. A person walking into a bank cannot demand the interbank rate; the bank will quote its counter rate.

The interbank rate is useful for comparison. It shows what the wholesale market is doing, and the gap between it and a retail rate shows the cost of access. That gap is what this site measures.

What the rate does not show

The interbank rate does not show the volume of deals, the number of banks reporting, or the direction of the market. It is a single snapshot, not a full picture.

It also does not show the rate for cash. Cash dollars carry handling and security costs, so the cash rate is always higher than the interbank rate. The interbank rate is for electronic transfers between banks.