Paragraph 1: Introduction and Acknowledgements
Dr. Johnson Pandit Asiama expressed profound humility and a deep sense of responsibility upon assuming the role of Governor of the Bank of Ghana. He extended gratitude to the President, Vice President, and Council of State for their confidence in his appointment. He also acknowledged the support of family, colleagues, friends, and mentors who shaped his career journey. Asiama recognized the current economic challenges facing Ghana, including high inflation, fiscal deficits, and excessive debt levels. He emphasized the Bank of Ghana’s crucial role in the nation’s economic reset, reaffirming the institution’s commitment to price stability, a sound financial system, and economic growth.
Paragraph 2: Recalibrating Monetary Policy
Asiama’s first priority is recalibrating Ghana’s monetary policy strategy for greater efficiency. He pledged to implement clear, predictable, and responsive policies, adopting a proactive approach to inflation management by utilizing advanced data analytics and artificial intelligence. Collaboration with other government agencies, particularly in managing food prices, is also central to his strategy. Asiama stressed the importance of consistent policy actions to avoid conflicting signals. Specific reforms include: refining the inflation targeting framework for increased transparency and effectiveness; replacing differentiated cash reserve requirements with open market operations (OMOs) for liquidity management; and improving communication with banks on regulatory matters. The Governor expressed confidence in achieving the inflation target within the forecast horizon.
Paragraph 3: Preserving Exchange Rate Stability
Asiama’s second priority focuses on exchange rate stability and curbing volatility. He committed to ending currency speculation and instability. He outlined plans to engineer a well-functioning and stable foreign exchange market to support economic activity. Key initiatives include: enacting a new foreign exchange law; implementing targeted market operations to eliminate forex leakages and improve reserve management; deepening participation in the Pan-African Payment and Settlement System (PAPSS) to facilitate intra-African trade using local currencies; reforming the remittance space; introducing transparent systems for fair pricing and distribution in the forex market; and leveraging gold reserves and foreign assets to support the Ghana cedi. Reforms to the Bank of Ghana’s Domestic Gold Purchase Programme are also planned to enhance efficiency, reserve accumulation, and transparency.
Paragraph 4: Realigning Regulatory Mandate and Promoting Financial Inclusion
Asiama’s third priority is realigning the regulatory mandate to promote financial intermediation and economic growth. While acknowledging the stability of Ghana’s banking sector, he highlighted the need for targeted reforms to address existing challenges. He promised to enforce strict prudential regulations while fostering responsible lending and innovation. Key measures include: tackling non-performing loans (NPLs) and weak risk management; collaborating with banks to reduce cybersecurity breaches and strengthen capital adequacy requirements; updating the Banks and Specialized Deposit-Taking Institutions Act to enhance resolution frameworks for distressed institutions; and collaborating with stakeholders to ensure a modern, fair, and sustainable financial system accessible to all Ghanaians. The fourth priority is bolstering financial inclusion and innovation for inclusive growth, poverty reduction, and individual empowerment. Asiama highlighted Ghana’s potential as a regional hub for financial technology and digital assets, advocating for a balanced approach that fosters innovation while ensuring financial stability through appropriate safeguards and policies. His agenda includes a digital strategy for the Bank of Ghana, continued support for expanding access to financial services through fintech and mobile banking, collaboration to build a stronger digital finance ecosystem, and developing a regulatory framework for digital assets.
Paragraph 5: Fiscal and Monetary Policy Coordination and Reversing Negative Equity
Asiama’s fifth priority involves fostering greater fiscal and monetary policy coordination while upholding the Bank of Ghana’s operational independence as mandated by law. He committed to enhancing key provisions in the Bank of Ghana Act to strengthen institutional autonomy in policymaking and operations while engaging constructively with the government and other stakeholders to ensure policy alignment. The sixth priority addresses the Bank of Ghana’s negative equity position. Asiama pledged to re-examine non-core operations for cost savings, implement austerity measures to reduce operational costs, and develop policies to restore the Bank’s equity to a positive position in the medium term.
Paragraph 6: Conclusion and Pledge of Commitment
Asiama emphasized that Ghana’s economic reset is more than a slogan; it signifies restoring public trust, rebuilding confidence, and securing a stable, innovative, and future-ready economy. He envisioned a transparent, predictable, and stable economic and financial system achieved through responsible governance, digital transformation, and sound economic policies. He reiterated his commitment to serving with diligence, impartiality, and unwavering dedication to the Bank of Ghana’s mandate, prioritizing the interests of the Ghanaian people above all else. He concluded by seeking support, partnership, and trust as he embarks on this journey.
