The Governor of the BoG, Dr Ernest Addison, who said this in Accra yesterday during the 94th Monetary Policy Committee (MPC) news conference to announce a new policy rate, said the bank had concluded negotiations with the U.S Federal Reserve to that effect.

"This facility is expected to be available for at least six months, provides an important foreign exchange buffer to boost dollar liquidity amid COVID-19 global pandemic, and will further enhance the BoG's dollar liquidity," Dr Addison said.

Dr Ernest Addison who is also the Chairman of the MPC, said the bank's latest forecast "points to elevated risks to the inflation outlook in the forecast horizon, underscored by the recent jump in headline inflation".

He stressed that the decision of government to access the Eurobond market earlier in the year, and the Rapid Credit Facility financing from the International Monetary Fund resulted in a build-up in reserves of $1.5 billion, constituting 2.2 per cent of GDP and therefore increased Gross International Reserves from $8.4 billion at the end of December 2019 to 10.3 billion at the end of April 2020, sufficient to provide 4.8 months of import cover.

"The strong reserve position has helped to ensure stability in the foreign exchange market even as external financing conditions tighten and emerging and frontier economies see capital flow reversals as a result of the heightened global uncertainty," Dr Addison said.