New Governor of central bank outlines six priority areas

Dr Johnson Pandit Asiama, the new Governor of the Bank of Ghana (BoG) has outlined six priority areas for turning around Ghana’s economy.

He said under the leadership of President John Dramani Mahama, Ghana was embarking on an economic reset and that this was about stabilizing the macroeconomy and addressing key issues such as high inflation, persistent fiscal deficits, and excessive debt levels.

“Achieving this stability will require monetary and exchange rate policy reforms, fiscal austerity measures, and debt restructuring to reduce fiscal risks and create a stable economic environment,” Dr Asiama stated during his swearing in as Governor and Dr Zakari Mumuni as First Deputy Governor by the President at the seat of Government in Accra.

The Governor expressed gratitude to President Mahama and the Council of State for the confidence reposed in them.

He said the inauguration was taking place at a pivotal moment in the nation’s economic history, stating that the challenges before Ghanaians required decisive leadership and prudent macroeconomic policies to reset the economy.

He noted that the Bank of Ghana was a key institution in the economy reset agenda and would remain steadfast in its mission to maintain price stability, ensure a sound financial system, and support economic growth.

He said of the six priority areas, as Governor, he would first look at the need to recalibrate the nation’s Monetary Policy Strategy and enhance the policy framework to achieve their mandate more efficiently.

He said under his leadership, their policies would be clear, predictable, and responsive to emerging threats.

“We shall adopt a more proactive and precise approach to managing inflation, leveraging on advanced data analytics and artificial intelligence,” he said.

“Also, we shall coordinate policy efforts with other government agencies, for example to manage 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.”

Dr Asiama said his second priority was on the need to preserve exchange rate stability and limit excessive volatility in the rates.

“The days of currency speculation and exchange rate instability must come to an end, and we are poised to ensure this happens. In this regard, the Bank of Ghana under my leadership will engineer a well-functioning, and stable foreign exchange market to support economic activity.”

Touching on his third priority area, Dr Asiama mentioned the need to realign their regulatory mandate to promote greater levels of financial intermediation to support economic growth.

He said while the nation’s banking sector remained broadly stable after the recent crises, it required targeted reforms to address legacy challenges and ensure continued resilience.

“Under my stewardship, we shall enforce strict prudential regulations while fostering an enabling environment for responsible lending and innovation in the banking sector.”

With regards to his fourth priority, Dr Asiama cited the need to boost financial inclusion and innovation to promote inclusive economic growth, reduce poverty, empower individuals, and ensure the stability and competitiveness of the financial system.

He 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 would be pursued with appropriate safeguards and policies to ensure financial stability, while fostering innovation in the payment ecosystem.

The Governor said his fifth priority was to promote greater fiscal and monetary policy coordination while maintaining their operational independence.

Dr Asiama said his six and final priority area was the need to reverse the Bank of Ghana’s negative equity position to maintain financial stability, credibility, and public trust.

He said in this vein they would seek to re-examine the Bank’s non-core operations where savings could be made.

“We shall adopt several austere measures to help reduce the Bank’s operational costs and achieve cost efficiency. Additionally, we will craft very clear policies to return the Bank’s negative equity to positive equity in the medium term,” he said.

He said the reset path the nation had embarked on was more than mere sloganeering declaring that it was about restoring public trust, rebuilding confidence, and ensuring that Ghana’s economy was stable, innovative and ready for the future.

“Through responsible financial sector governance, digital transformation, and sound economic policies, we will create an economic and financial system that is transparent, predictable, and stable,” Dr Asiama said.

“Businesses will have the confidence to plan, and individuals will have access to a secure financial system that fosters growth and opportunity.”

On his part, President Mahama reiterated the Government’s commitment to ensuring that the Central Bank operated free from political interference, guided solely by its mandate.

“This is the path to building a resilient economy—one where policies are driven by discipline, foresight, and the best interests of the Ghanaian people,” he stated.

Source: GNA

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