Dr Johnson Pandit Asiama, the Governor of the Bank of Ghana, has stressed the need to recalibrate the country’s monetary policy strategy and enhance the policy framework to achieve our mandate more efficiently.
He said under his leadership, their policies would be clear, predictable, and responsive to emerging threats.
Dr Asiama was speaking at the swearing-in ceremony of himself as the Governor and Mr Zakari Mumuni, as the first Deputy Governor of the Bank of Governor.
He said the Bank would adopt a more proactive and precise approach to managing inflation, leveraging advanced data analytics and artificial intelligence.
“Also, we shall coordinate policy efforts with other government agencies, for example to manage food prices and 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 added.
The Governor said they would pursue reforms in the inflation targeting framework to foster more transparency and enhance the effectiveness of monetary policy implementation, discontinue the use of differentiated cash reserve requirements, and instead rely on open market operations to manage liquidity conditions.
Dr Asiama said the Bank would improve their communication regime and ensure regular dialogue with banks on regulatory matters and they were confident that current levels of inflation would gradually trend back to target range and within the forecast horizon.
He said they would preserve exchange rate stability and limit excessive volatility in the rates and the days of currency speculation and exchange rate instability must come to an end, and we are poised to ensure this happens.
He said in this regard, the Central Bank under its leadership would engineer a well-functioning, and stable foreign exchange market to support economic activity.
Dr Asiama said the Bank would implement strategic interventions, including the enactment of a new foreign exchange law to replace the Foreign Exchange Act 2006 (Act 723).
“We will implement targeted market operations to eliminate leakages of forex and improve our reserves management, deepen our participation in the Pan African Payment and Settlement System, allowing Ghanaian businesses to trade across Africa using local currencies instead of always relying on the US dollar,” he said.
The Governor said they would implement further reforms in the remittance space and collaborate with the Fintech and remittance agencies to harness remittances as a major source of FX and introduce structured and transparent systems that ensure fair pricing and fair distribution in the forex market.
The Bank will also leverage the country’s gold reserves and strategic foreign assets more effectively to support the Ghana cedi, reform the Bank of Ghana’s Domestic Gold Purchase Programme to improve efficiency and enhance reserve accumulation and increase transparency in gold transactions.
He said these measures; the Bank would build a more resilient foreign exchange market that inspires confidence among investors and businesses.
The Governor said there was also the need to realign regulatory mandates to promote greater levels of financial intermediation to support economic growth.
He said while the country’s banking sector remained broadly stable after the recent crises, it required targeted reforms to address legacy challenges and ensure continued resilience.
He said under his stewardship; they shall enforce strict prudential regulations while fostering an enabling environment for responsible lending and innovation in the banking sector.
The Bank will tackle the problem of high non-performing loans (NPLs) and weak risk management practices in the industry, work closely with banks to reduce the high incidence of cybersecurity breaches and strengthen capital adequacy requirements and update the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930) which was passed during your tenure in 2016, to enhance our resolution framework, and ensure that distressed institutions are effectively managed while maintaining financial stability.
The Governor said they would work with all stakeholders including banks, financial institutions, technology partners, businesses, and regulators – to ensure that every Ghanaian; from traders to entrepreneurs, benefit from a financial system that is modern, fair, and built to last.
He said they would boost financial inclusion and innovation to promote inclusive economic growth, reduce poverty, empower individuals, and ensure the stability and competitiveness of the financial system.
Dr Asiama said it was gratifying to note that Ghana was well-poised to become a regional hub for financial technology and digital assets; and this transformation agenda will be pursued with appropriate safeguards and policies to ensure financial stability, while fostering innovation in the payment ecosystem.
“We will introduce a digital strategy to adapt to the digital age, improve our operations, and better serve the needs of our stakeholders, continue to support initiatives that expand access to financial services, leveraging fintech and mobile banking solutions to broaden the scope of access, especially in underserved communities,” he said.
He said they would work with banks, start-ups and international partners to build a stronger digital finance ecosystem – one that supports secured transactions, faster cross border payments and financial accessibility for all.
The Governor said they would work towards a clear regulatory framework for digital assets, ensuring that new financial innovations are introduced in a safe and structured manner.
“We will promote greater fiscal and monetary policy coordination while maintaining our operational independence and they will uphold the independence while working collaboratively with the government and our international partners,” he said.
Dr Asiama said to strengthen their independence further, they would enhance key provisions in the Bank of Ghana Act, 2002 (Act 612) and as amended, to ensure that institutional autonomy was not just a legal principle but a practical reality in their policymaking and operations.
He said they would engage constructively with government and other key stakeholders to always ensure alignment between monetary, fiscal and other policies and they would reverse the Bank’s negative equity position to maintain financial stability, credibility, and public trust.
GNA
