By Sarah Baafi
The newly sworn-in Governor of the Bank of Ghana (BoG) Dr. Johnson Asiamah, has outlined a comprehensive strategy to address Ghana’s economic challenges during his inaugural address on February 25, 2025. The plan focuses on stabilizing the macroeconomy by tackling high inflation, fiscal deficits, and debt levels.
Dr. Asiamah emphasized the need to adjust monetary policy using advanced data analytics and AI to manage inflation more effectively. This includes reforms in the inflation targeting framework and shifting to open market operations for liquidity management. The goal is to ensure that policies are clear, predictable, and responsive to emerging trends.
The Bank of Ghana will also engineer a stable foreign exchange market through strategic interventions. This includes the enactment of a new foreign exchange law to replace the Foreign Exchange Act 2006 and deeper participation in the Pan-African Payments and Settlement System (PAPSS). The PAPSS will enable Ghanaian businesses to trade across Africa using local currencies, reducing reliance on the U.S. dollar.
In addition, he will realign the regulatory mandate to address legacy challenges in the banking sector. This involves tackling high-performing loans and enhancing cybersecurity measures. Strict prudential regulations will be enforced while fostering an environment for responsible lending and innovation.
He aims to boost financial inclusion and innovation, positioning Ghana as a regional hub for financial technology and digital assets. This transformation will be pursued with safeguards to ensure financial stability while fostering innovation in the payments ecosystem.
