Dr. Johnson Pandit Asiamah, the newly appointed Governor of the Bank of Ghana, has pledged to embark on Economic Reset to Stabilise Macro-economy, as he assumes office as the Governor of the Bank of Ghana.
Delivering a speech at his swearing-in ceremony to officially takeover as the Governor of the Bank of Ghana, he stated that under the leadership of President Mahama, Ghana is embarking on an economic reset and that the reset is about stabilising the macro economy and addressing key issues such as high inflation, persistent fiscal deficits and excessive debt levels.
According to him, 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. He expressed the view that the challenges before us, as a country, require decisive leadership and prudent macro-economic policies to reset the economy.
According to him, the Bank of Ghana is a key institution in the agenda to reset the economy and must remain steadfast in its mission to maintain price stability, ensure a sound financial system and support economic growth. He also reiterated the need to recalibrate our monetary policy strategy and enhance the policy framework to achieve our mandate more efficiently.
He disclosed that under his leadership, BoG policies will be clear, predictable and responsive to emerging threats, and shall adopt a more proactive and precise approach to managing inflation, leveraging on advanced data analytics and artificial intelligence.
He revealed that his outfit shall coordinate policy efforts with other government agencies, for example, to manage food prices and shall be consistent in the policy actions to avoid sending conflicting signals as happened in the recent past and shall work to enhance monetary policy implementation, among others.
He said the BoG shall 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 (OMOs) to manage liquidity conditions.
He indicated that the BoG shall improve their communication regime and ensure regular dialogue with banks on regulatory matters and are confident that current levels of inflation will gradually trend back to target range and within the forecast horizon.
Dr. Asiamah stressed that his second priority is on the need to preserve exchange rate stability and limit excessive volatility in the rates, saying the days of currency speculation and stressed that BoG is poised to ensure exchange rate instability come to an end.
He said the Bank of Ghana under his leadership will engineer a well-functioning and stable foreign exchange market to support economic activity among others, while implementing strategic interventions, including the enactment of a new foreign exchange law to replace the Foreign Exchange Act 2006 (Act 723).
He said the BoG will implement targeted market operations to eliminate leakages of forex and improve our reserves management, deepen their 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.
He noted that the BoG will implement further reforms in the remittance space and collaborate with Fintech and remittance agencies to harness remittances as a major source of foreignexchange, introduce structured and transparent systems that ensure fair pricing and fair distribution in the forex market.
He said the Bank will leverage their gold reserves and strategic foreign assets more effectively to support the Ghana cedi and reform the Bank of Ghana’s Domestic Gold Purchase Programme to improve efficiency, enhance reserve accumulation and increase transparency in gold transactions.
He expressed optimism that through these measures, a more resilient foreign exchange market that inspires confidence among investors and businesses will be built. He stated that another area of priority is the need to realign their regulatory mandate to promote greater levels of financial intermediation to support economic growth.
The Governor also said banking requires targeted reforms to address legacy challenges to ensure continued resilience. He indicated that under his stewardship, BoG shall enforce strict prudential regulations while fostering an enabling environment for responsible lending and innovation in the banking sector.
He would also tackle the problem of high non-performing loans (NPLs) and weak risk management practices in the industry, by working closely with banks to reduce the high incidence of cyber-security breaches and strengthen capital adequacy requirements, update the Banks and Specialised Deposit.
He also stressed 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, noting that Ghana is well-poised to become a regional hub for financial technology and digital assets, hence the pursuant of a transformation agenda with appropriate safeguards and policies to ensure financial stability, while fostering innovation in the payment ecosystem.
According to him, they will introduce a digital strategy to adapt to the digital age, improve their operations and better serve the needs of their stakeholders and pledged to 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, 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.
He said the BoG will work towards a clear regulatory framework for digital assets, ensuring that new financial innovations are introduced in a safe and structured manner.He indicated the need to promote greater fiscal and monetary policy coordination while maintaining their operational independence.
The post Asiama pledges to reset the economy as he officially takes over BoG appeared first on The Ghanaian Chronicle.
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