Editorial: Steps taken to ensure inflation trends downward for improved macroeconomic stability

Dr. Zakari Mumuni, Bank of Ghana First Deputy Governor, expects inflation to trend downward in coming months because of the tight monetary policy measures being implemented.

He highlighted the improved macroeconomic environment that will aid this reduction of the inflation rate in coming months. “Headline inflation is expected to trend further down toward the end-year target of 12%, supported by a tight monetary policy stance.”

Dr. Mumuni additionally said the Bank has initiated steps to develop guidelines for the regulation of Digital Credit delivery in Ghana to provide an optimal balance between innovation and financial stability.

The First Deputy Governor made it clear that remittance inflows have become a critical component of the country’s forex build-up and it is expected that the ongoing reforms will tighten foreign exchange rules regarding remittances to help lower costs.

“The Bank of Ghana, on its part, has also provided a layer of security and transparency and encouraged the diaspora communities to channel more funds to Ghana”.

He added that the bentral bank will continue promoting development of innovative financial solutions and services tailored for the diaspora to facilitate their settlement and investment plans in the country.

The necessary measures have been instituted to improve banking sector confidence and aid attraction of the diaspora. The central bank plays an important role in mobilising diaspora capital for development by offering tailored financial products, leveraging digital financial platforms and addressing barriers to investment.

The Bank of Ghana will also strengthen payment systems to aid in attracting diaspora investments. Various regulations and guidelines have been introduced to support the payment ecosystems, including enactment of the comprehensive Payment Systems and Services Act 2019 (Act 987) which has revitalised the digitalisation agenda.

Indeed, creativity will play a key role in regulating the banking sector as it seeks to develop emerging innovations such as digital assets to expand investment options.

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