The newly sworn-in Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has laid out a six-point plan to help stabilise the economy, control inflation, and strengthen the financial sector.
Speaking at the presidency today February 25, 2025, after being sworn in by President John Dramani Mahama, Dr. Asiama said urgent action was needed to tackle high inflation, exchange rate fluctuations, weak banking regulations, and rising debt.
He outlined six priority areas for the BoG:
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.
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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.
Dr. Asiama assured Ghanaians that the BoG’s policies would be clear, predictable, and responsive to emerging economic challenges.
“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 said.