The Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, has received a Policy Impact Award from the Ghana Union of Traders Association, in recognition of what traders described as decisive steps to stabilise prices and the currency.
The award, presented at GUTA’s inauguration of new executives in Accra, was accepted on his behalf by the Bank’s communications director, Bernard Otabil, and secretary, Aimee Quashie.
GUTA credited the Governor’s early tenure with helping to rein in inflation and restore relative calm to the Ghanaian cedi, offering some relief to businesses grappling with high input costs and exchange-rate volatility.
Official data show inflation easing sharply from 23.8 per cent in December 2024 to 5.4 per cent a year later—one of the fastest disinflation episodes in recent years. Dr Asiama has acknowledged, however, that the adjustment came at a cost, reflecting tight monetary conditions and constrained liquidity.
“The trade-off between inflation control and growth is real,” he said in recent remarks, adding that sustaining stability into 2026 should require less aggressive policy support.
Early policy impact
Since assuming office, Dr Asiama’s approach has centred on restoring credibility to monetary policy, tightening liquidity conditions and signalling a firm anti-inflation stance. That posture appears to have anchored expectations, contributing to a firmer cedi and moderating price pressures.
For businesses, particularly import-dependent traders, a more stable currency has reduced the unpredictability of pricing and inventory planning. The cedi’s relative stability has also eased pass-through effects on inflation, reinforcing the broader disinflation trend.
At the macro level, improved currency stability helps contain external vulnerabilities, supports reserve management and enhances investor sentiment—key factors as Ghana navigates post-crisis recovery and engages international partners.
Balancing growth and credit
The challenge now lies in recalibrating policy without undermining gains. Tight conditions that helped tame inflation have also weighed on credit expansion and private sector activity.
Dr Asiama has signalled a shift towards strengthening the financial sector as a channel for growth. “When banks are strong, they can extend more credit,” he noted, underscoring the role of a resilient banking system in supporting economic recovery.
Outlook
While the initial results have been broadly welcomed by the business community, sustaining low inflation and currency stability will depend on policy consistency, fiscal discipline and external conditions.
For now, the award from GUTA reflects cautious optimism that the central bank’s current trajectory—focused on stability first—may be laying the groundwork for a more durable economic recovery.
Dr Johnson Pandit Asiama
