Dr. Johnson Asiama, the recently sworn-in governor of the Bank of Ghana (BoG), has outlined a six-point plan to assist stabilize the economy, rein in inflation, and fortify the banking industry.
After being sworn in by President John Dramani Mahama, Dr. Asiama spoke at the presidency today, February 25, 2025, and stated that immediate action was required to address mounting debt, weak financial rules, excessive inflation, and exchange currency swings.
He listed the BoG’s top six priorities:
1. Monetary policy reforms – He said the central bank will adopt a more data-driven approach to managing inflation while working with government agencies to control food prices. Differentiated cash reserve requirements will be phased out, with more reliance on open market operations to regulate liquidity.
2. Exchange rate stability – The BoG will introduce a new foreign exchange law to replace the Foreign Exchange Act 2006 (Act 723) and expand Ghana’s participation in the Pan-African Payment and Settlement System (PAPSS) to promote trade in local currencies. Additional measures will be taken to curb speculation and strengthen forex reserves.
3. Banking sector regulations – Dr Asiama described the banking sector as stable but noted the need for reforms to address non-performing loans, improve risk management, and strengthen cybersecurity. The Banks and Specialised Deposit-Taking Institutions Act (Act 930) will be reviewed to ensure distressed institutions are properly managed.
4. Financial inclusion and innovation – The BoG will promote digital finance and mobile banking, especially in underserved communities. A digital strategy will be introduced to expand access to financial services and improve the security of digital transactions.
5. Policy coordination – While maintaining its independence, the BoG will work closely with the government and international partners to align monetary and fiscal policies. Dr. Asiama stressed that the central bank’s independence must be reflected in its policy decisions, not just in legal provisions.
6. Restoring the BoG’s financial position – Acknowledging concerns about the BoG’s financial standing, Dr Asiama said steps would be taken to rebuild its credibility. The central bank will review its non-core operations, cut operational costs, and introduce measures to strengthen its financial position.
Ghanaians were reassured by Dr. Asiama that the BoG’s policies will be transparent, dependable, and adaptable to new economic issues.
“The path we have embarked on is about restoring public trust, rebuilding confidence, and ensuring that Ghana’s economy is stable, innovative, and ready for the future,” he stated.
Source: newsthemegh.com