Newly sworn-in Bank of Ghana Governor, Dr. Johnson Pandit Asiama, at his inauguration ceremony on February 25, 2025 outlined an ambitious agenda focused on monetary policy reforms, exchange rate stability and financial sector resilience.
He emphasised the need for decisive leadership to address the country’s macroeconomic challenges, including high inflation, fiscal deficits and high debt levels, as the country embarks on an economic reset.
Dr. Asiama outlined six priority areas to guide his tenure. At the top of his agenda is recalibration of monetary policy to enhance transparency and efficiency. He also pledged to adopt a proactive approach to inflation management, leveraging advanced data analytics and artificial intelligence.
The country’s inflationary profile in 2024 posted a mixed performance as price pressures in the year’s second half erased disinflationary gains from first half of the year. The annual inflation rate end-2024 printed at 23.80%, exceeding the 22.0% target outer upper band under the IMF programme by 180bps.
Inflation for January 2025 still remains elevated at 23.5 percent. In addition, the central bank will discontinue the use of differentiated cash reserve requirements, opting instead for open market operations to manage liquidity.
“Our policies will be clear, predictable and responsive to emerging threats,” he added.
Exchange rate stability emerged as a key focus, with Dr. Asiama vowing to curb currency speculation and excessive volatility. The Bank of Ghana plans to implement strategic interventions, including a new foreign exchange law to replace the 2006 Foreign Exchange Act.
The central bank will also deepen its participation in the Pan African Payment and Settlement System (PAPSS), enabling Ghanaian businesses to trade across Africa using local currencies instead of the US dollar.
“The days of currency speculation and exchange rate instability must come to an end. We will engineer a well-functioning and stable foreign exchange market to support economic activity,” Dr. Asiama declared.
To bolster Ghana’s foreign reserves, the central bank will reform its Domestic Gold Purchase Programme and leverage strategic foreign assets more effectively. The new Governor emphasised a need to address legacy challenges in the banking sector, including high non-performing loans and weak risk management practices.
