Cedi@60: Fiscal Discipline Key to Preserving Monetary Independence – BoG Governor
Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has underscored the critical importance of fiscal discipline in safeguarding the independence of central banks and ensuring long-term price stability.
Speaking at the launch of the Cedi@60 Celebration on Tuesday, October 28, 2025, Dr. Asiama cautioned that the growing interplay between fiscal stress and monetary policy autonomy poses a serious challenge to developing economies, including Ghana.
“One of the most pressing challenges we face is the growing interplay between fiscal stress and monetary policy autonomy. In many developing countries, including our own, high public debt levels risk undermining the independence of central banks. When fiscal imbalances persist, the pressure to monetize deficits becomes real, and with it, the danger of inflationary drift,” he said.
He added that, “Restoring and preserving fiscal discipline is not just a government priority; it is a monetary safeguard.”
Dr. Asiama noted that the current global economic landscape has become increasingly complex, with faster information flows, geopolitical uncertainty, and digital disruption challenging traditional monetary policy frameworks.
“In decades past, monetary authorities operated in a world with slower information flows, clearer transmission channels, and fewer external shocks. Today, the environment is radically different,” he remarked.
He explained that global markets move in milliseconds, and domestic economies are now more vulnerable to cross-border shocks, climate risks, and misinformation. Despite these challenges, he stressed that central banks are still expected to deliver price stability, currency integrity, and support for inclusive growth.
“Our mandate remains the same. But the terrain we navigate is shifting rapidly beneath our feet,” he added.
Meanwhile, the BoG Governor disclosed that Ghana’s gross international reserves have risen to $12 billion, up from $10.7 billion in August 2025, providing the country with 6.5 months of import cover.
Dr. Asiama attributed the reserves buildup to disciplined fiscal management, effective monetary policy implementation, and renewed investor confidence in the economy.
“Our gross international reserves are currently around $12 billion, which is providing a robust cushion against external volatility and restoring our investor confidence,” he stated.
He further noted that the strong reserve position complements other positive macroeconomic indicators, including a decline in headline inflation and continued stability of the local currency.
Themed “60 Years of the Cedi: A Symbol of Sovereignty, Stability, and Economic Resilience,” the Cedi@60 celebration aims to promote national pride in the local currency while reinforcing public confidence in Ghana’s economic recovery trajectory.
