The Governor of the Bank of Ghana (BoG), Dr. Johnson Pandit Asiama, has pledged to reverse the BoG’s negative equity position to maintain financial stability, credibility, and public trust.
“We will re-examine the Bank’s non-core operations to identify cost-saving opportunities. Several austere measures will be implemented to reduce operational costs and improve efficiency. Additionally, we will establish clear policies to restore the Bank’s negative equity to positive equity in the medium term,” he stated.
These commitments were part of his six priority areas outlined before the President of Ghana during his swearing-in ceremony at the Jubilee House in Accra.
Dr. Asiama emphasized that Ghana is undergoing an economic reset—focused on stabilizing the macroeconomy and addressing key issues such as high inflation, persistent fiscal deficits, and excessive debt levels.
“Achieving this stability requires reforms in monetary and exchange rate policies, fiscal austerity measures, and debt restructuring to reduce fiscal risks and create a stable economic environment,” he noted.
Strengthening Monetary Policy Implementation
To enhance the effectiveness of monetary policy, Dr. Asiama aims to:
Recalibrate the monetary policy strategy for efficiency and clarity.
Ensure clear, predictable, and proactive policies to manage inflation using AI and data-driven approaches.
Coordinate with government agencies to stabilize food prices.
Reform the inflation targeting framework for greater transparency.
Discontinue differentiated cash reserve requirements and rely on open market operations.
Strengthen communication and maintain regular dialogue with banks.
Ensuring Exchange Rate Stability
Dr. Asiama highlighted plans to preserve exchange rate stability and limit excessive volatility.
“The days of currency speculation and exchange rate instability must come to an end. The Bank of Ghana will engineer a well-functioning and stable foreign exchange market to support economic activity,” he asserted.
Key measures include:
Enacting a new foreign exchange law to replace the Foreign Exchange Act 2006 (Act 723).
Implementing targeted market operations to reduce forex leakages and improve reserves management.
Deepening participation in the Pan-African Payment and Settlement System (PAPSS) to enable Ghanaian businesses to trade in local currencies instead of relying on the US dollar.
Enhancing remittance reforms in collaboration with fintech and remittance agencies to harness FX inflows.
Introducing structured and transparent systems for fair pricing and distribution in the forex market.
Leveraging gold reserves and strategic foreign assets to support the Ghanaian cedi.
Reforming the Bank of Ghana’s Domestic Gold Purchase Programme to improve efficiency and reserve accumulation.
Strengthening Financial Intermediation
To boost economic growth, Dr. Asiama stressed the need to enhance financial intermediation and regulatory oversight.
Key actions include:
Addressing high non-performing loans (NPLs) and improving risk management.
Strengthening cybersecurity and capital adequacy requirements.
Updating Act 930 to improve resolution frameworks for distressed institutions.
Collaborating with stakeholders to build a modern, inclusive, and stable financial system.
Promoting Financial Inclusion & Innovation
Dr. Asiama also outlined plans to promote fintech and digital assets while ensuring financial stability.
Key initiatives
Implementing a digital strategy to enhance banking operations.
Expanding financial access through fintech and mobile banking.
Strengthening the digital finance ecosystem for secure transactions and cross-border payments.
Developing a regulatory framework for digital assets to ensure safe and structured innovation.
Enhancing Fiscal & Monetary Policy Coordination
Dr. Asiama reaffirmed the Bank of Ghana’s independence under Act 612 while ensuring greater policy alignment with fiscal authorities. Key reforms will strengthen institutional autonomy and enhance collaboration with government and international partners.
Restoring Financial Stability
As part of efforts to restore financial stability, Dr. Asiama pledged to:
Implement cost-cutting measures and streamline non-core operations.
Establish clear policies to return the Bank’s negative equity to a positive position in the medium term.
Through these initiatives, Dr. Asiama aims to build a more stable and resilient financial system that fosters economic growth and investor confidence.
By Eugene Davis
