The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, has outlined six key focus areas aimed at reforming Ghana’s financial sector and stabilising the cedi against the dollar.
Speaking at Jubilee House after being sworn in alongside his deputy, Dr Zakari Mumuni, by President John Dramani Mahama, Dr Asiama, emphasised the necessity of recalibrating the monetary policy strategy and reinforcing the policy framework to more effectively fulfil the Bank of Ghana’s mandate.
“Under my leadership, our policies will be clear, predictable, and responsive to emerging threats. We shall adopt a more proactive and precise approach to managing inflation, leveraging advanced data analytics and artificial intelligence,” he assured.
Dr Asiama, also emphasised the importance of coordinating policy efforts with other government agencies, particularly in managing food prices.
“We shall be consistent in our policy actions to avoid sending conflicting signals, as happened in the recent past, and we shall work to enhance monetary policy implementation,” he stated.
As part of the reforms, Dr Asiama, pledged to refine the inflation-targeting framework to enhance transparency and improve monetary policy effectiveness.
He announced that the BoG, would discontinue using differentiated cash reserve requirements and opt instead for open market operations (OMOs) to manage liquidity conditions.
“We shall improve our communication regime and ensure regular dialogue with banks on regulatory matters. We are confident that current inflation levels will gradually return to the target range within the forecast horizon,” he said.
On exchange rate stability, Dr Asiama, reaffirmed the BoG’s commitment to limiting excessive volatility.
“The days of currency speculation and exchange rate instability must come to an end, and we are poised to ensure this happens. Under my leadership, the Bank of Ghana will engineer a well-functioning and stable foreign exchange market to support economic activity,” he declared.
He added that the BoG, would implement strategic interventions, including enacting a new foreign exchange law to replace the Foreign Exchange Act 2006 (Act 723).
“We will implement targeted market operations to eliminate forex leakages, improve reserves management, and deepen our participation in the Pan-African Payment and Settlement System (PAPSS), allowing Ghanaian businesses to trade across Africa using local currencies instead of always relying on the US dollar.”
Dr Asiama, also announced plans to reform the remittance space by collaborating with fintech and remittance agencies to harness remittances as a key source of foreign exchange.
To ensure fair pricing and distribution in the forex market, the BoG will introduce structured and transparent systems.
“We shall leverage our gold reserves and strategic foreign assets more effectively to support the cedi and reform the BoG’s Domestic Gold Purchase Programme to enhance efficiency, improve reserve accumulation, and increase transparency in gold transactions,” he added.
President Mahama, on his part, tasked Dr Asiama and his deputy to safeguard the independence of the central bank, while emphasizing the importance of rebuilding public trust and strengthening the BoG’s credibility.
“Protect the independence of the Bank of Ghana,” President Mahama urged the newly appointed officials.
He encouraged them to uphold responsible fiscal management and strictly adhere to the BoG’s legal and regulatory framework.
“As President, I am committed to ensuring that the central bank operates free from political interference, guided solely by its mandate,” he asserted, adding that adherence to these principles is the only way to achieve a resilient economy.
President Mahama’s endorsement of Dr Asiama, comes amid criticism from the opposition New Patriotic Party (NPP), which has questioned the legality and suitability of his appointment.
The NPP has cited Dr Asiama’s alleged involvement in the collapse of UniBank and UT Bank. He was previously facing trial for this, but the government withdrew all charges.
The opposition party argues that his legal history raises concerns about his integrity and suitability for the role, which demands a high level of trust and credibility.
However, during the swearing-in ceremony, President Mahama defended Dr Asiama’s appointment, stressing the need for experienced and decisive leadership to navigate Ghana’s financial challenges.
“Ghana’s financial sector is in crisis, and the task ahead demands experience, foresight, and decisive leadership.
With Dr Asiama at the helm of the Bank of Ghana, I am confident that we will rebuild trust in the institution, restore stability, and put our economy back on the path of sustained growth,” the President stated.
“I trust him with this responsibility, knowing that he will serve with diligence and excellence,” he concluded.
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