In a ceremony held today, February 25, 2025, at the presidency in Accra, President John Dramani Mahama officially swore in Dr. Johnson Asiama as the new Governor of the Bank of Ghana (BoG) and Dr. Zakaria Mumuni as the First Deputy Governor. The President emphasized the critical need for experienced and decisive leadership to address the current challenges facing Ghana’s financial sector.
Following his swearing-in, Dr. Asiama outlined a comprehensive six-point plan aimed at stabilizing the nation’s economy, controlling inflation, and strengthening the financial sector. He highlighted the urgency of addressing issues such as high inflation rates, exchange rate volatility, weak banking regulations, and escalating national debt.
The six priority areas detailed by Dr. Asiama are:
- Monetary Policy Reforms: Implementing a data-driven approach to manage inflation and collaborating with government agencies to regulate food prices. This includes phasing out differentiated cash reserve requirements and relying more on open market operations to control liquidity.
- Exchange Rate Stability: Introducing new foreign exchange legislation to replace the existing Foreign Exchange Act 2006 (Act 723) and enhancing Ghana’s participation in the Pan-African Payment and Settlement System (PAPSS) to facilitate trade using local currencies. Additional measures will target speculation and bolster foreign exchange reserves.
- Banking Sector Regulations: While acknowledging the stability of the banking sector, Dr. Asiama emphasized the need for reforms to tackle non-performing loans, enhance risk management practices, and strengthen cybersecurity. A review of the Banks and Specialised Deposit-Taking Institutions Act (Act 930) is planned to ensure effective management of distressed financial institutions.
- Financial Inclusion and Innovation: Promoting digital finance and mobile banking services, particularly in underserved communities. The BoG intends to introduce a digital strategy to expand access to financial services and improve the security of digital transactions.
- Policy Coordination: Maintaining the central bank’s independence while fostering close collaboration with the government and international partners to align monetary and fiscal policies. Dr. Asiama stressed that the BoG’s autonomy should be evident in its policy decisions, not merely in legal statutes.
- Restoring the BoG’s Financial Position: Addressing concerns about the central bank’s financial health by reviewing non-core operations, reducing operational expenses, and implementing measures to strengthen its financial standing.
Dr. Asiama assured the public that the Bank of Ghana’s policies would be transparent, predictable, and responsive to emerging economic challenges. He stated, “The path we have embarked on is about restoring public trust, rebuilding confidence, and ensuring that Ghana’s economy is stable, innovative, and ready for the future.”
The appointment of Dr. Asiama and Dr. Mumuni comes at a pivotal time for Ghana’s economy, with stakeholders expressing optimism that their leadership will steer the nation toward economic recovery and growth.