Bank of Ghana Implements Key Reforms to Boost Transparency and Economic Confidence – Governor Asiama

The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has announced a series of strategic reforms aimed at enhancing the central bank’s credibility, transparency, and alignment with international best practices.

Speaking at the 9th CEOs Summit in Accra on Monday, May 25, Dr. Asiama highlighted significant structural changes within the BoG, including the timely release of Monetary Policy Committee (MPC) decisions and the publication of individual voting positions by MPC members.

“These are not superficial changes,” he stressed. “They reflect a commitment to building a credible institution that communicates effectively and acts in a consistent, predictable manner.”

According to Dr. Asiama, these reforms are already yielding results. Business confidence is at its highest in seven years, driven by declining inflation, improved credit flow, and a renewed sense of optimism about Ghana’s economic trajectory.

Despite the positive outlook, the Governor cautioned that global uncertainties—such as divergent inflation trends and a proposed 5% U.S. tax on outbound remittances—necessitate continued vigilance.

Nonetheless, Ghana’s economic indicators show a promising trend. The real sector is gaining momentum, supported by rising exports, increased lending to the private sector, and robust construction activity. The Ghana Purchasing Managers’ Index (PMI) recently climbed above the 50-point threshold, signaling expansion in output and new orders.

Consumer and business confidence levels have also surged, buoyed by easing inflationary pressures and stable macroeconomic conditions. Headline inflation has declined steadily for four consecutive months, reaching 21.2% in April—down from the start of the year by 2.6 percentage points.

BoG’s gross international reserves have grown to US$11 billion, equating to about 4.2 months of import cover. Additionally, the Ghanaian cedi has appreciated by 24.1% against the U.S. dollar since the beginning of the year.

Dr. Asiama dismissed suggestions that the central bank is artificially propping up the cedi. “We are not intervening in the FX market using reserves,” he emphasized. “The cedi’s strength stems from sound monetary discipline, reforms to the FX auction system, more effective remittance channels, and stronger market oversight.”

Last week, the MPC unanimously voted to maintain the benchmark policy rate at 28%, underscoring the central bank’s commitment to its disinflation goals. Inflation is now expected to return to the target range of 8±2% by the first quarter of 2026.

In a further move to strengthen financial stability, the BoG will revise the Cash Reserve Ratio (CRR) policy effective June 5. Banks will be required to maintain reserves in the same currency as their customer deposits—foreign currency for foreign accounts and cedis for local ones. This reform is designed to enhance foreign exchange risk management and improve overall liquidity planning.

“These are deliberate and long-term policy measures,” Dr. Asiama concluded, “that ensure stability and support Ghana’s growth momentum.”