Dr. Johnson Asiama Outlines Six Priority Areas for His First Term as BoG Governor
Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has announced six key priority areas he will focus on during his tenure, emphasizing monetary policy recalibration, exchange rate stability, financial sector reforms, financial inclusion, policy coordination, and restoring the Bank’s financial position.
Speaking at his swearing-in ceremony on Tuesday, February 25, 2025, Dr. Asiama stressed the need to recalibrate Ghana’s monetary policy strategy for better efficiency and effectiveness.
“Our policies will be clear, predictable, and responsive to emerging threats. We shall adopt a more proactive and precise approach to managing inflation, leveraging advanced data analytics and artificial intelligence. Additionally, we will coordinate policy efforts with other government agencies to manage food prices and enhance monetary policy implementation,” he stated.
Key reforms in this regard include strengthening the inflation-targeting framework, discontinuing differentiated cash reserve requirements in favor of open market operations, and improving communication with banks on regulatory matters.
Exchange Rate Stability and FX Market Reforms
Dr. Asiama also underscored the importance of stabilizing the exchange rate and ending currency speculation.
“The days of currency speculation and exchange rate instability must come to an end. Under my leadership, the BoG will engineer a well-functioning and stable foreign exchange market,” he assured.
Proposed measures include replacing the Foreign Exchange Act 2006 (Act 723) with a new law, improving forex reserves management, enhancing Ghana’s participation in the Pan-African Payment and Settlement System (PAPSS), and leveraging gold reserves to support the cedi.
Banking Sector Reforms and Financial Inclusion
The Governor highlighted plans to strengthen financial intermediation by addressing high non-performing loans (NPLs), improving cybersecurity measures, and updating the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930).
“We shall enforce strict prudential regulations while fostering an enabling environment for responsible lending and banking sector innovation,” he noted.
Additionally, Dr. Asiama aims to expand financial inclusion and digital transformation, positioning Ghana as a regional hub for fintech and digital assets. This will involve implementing a digital finance strategy, strengthening the regulatory framework for digital assets, and improving access to financial services in underserved communities.
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While reaffirming the central bank’s independence, he pledged enhanced coordination between monetary and fiscal policies. He also committed to reversing the BoG’s negative equity position through cost-cutting measures and operational efficiency.
“The reset path we have embarked on is about restoring public trust, rebuilding confidence, and ensuring Ghana’s economy is stable, innovative, and ready for the future,” he emphasized.
Dr. Asiama concluded with a pledge to serve with diligence and impartiality, focusing solely on the interests of the Ghanaian people.
