News Guide Africa

Tag: Dr Johnson Asiamah

  • Cut bad loans to spur private sector credit – BoG to commercial lenders

    Cut bad loans to spur private sector credit – BoG to commercial lenders

    By Adnan Adams Mohammed

     

    Commercial banks operating in Ghana must step up credit extension to the private sector while aggressively cleaning up their balance sheets, the Bank of Ghana (BoG) declared in a broad policy enforcement drive aimed at spurring national economic recovery.

    Addressing financial sector leaders, the BoG Governor emphasized that avoiding lending under the guise of risk aversion undermines economic growth and hinders business development across the country.

    “Banks must learn to manage risk, not avoid lending,” the Governor stated, urging financial institutions to adopt robust risk-assessment frameworks that allow them to extend credit responsibly to key sectors of the economy.

    The central bank chief noted that while maintaining asset quality is critical, a complete freeze or excessive restriction on credit facilities deprives viable businesses of the capital needed to expand and drive national recovery.

     

    Warning Over Post-Commencement Financing

    In a related directive, the central bank issued a stern warning to financial institutions regarding financial engineering practices that obscure the true health of their loan books. Specifically, banks were cautioned against misusing post-commencement financing mechanisms to mask underperforming assets.

    “BoG warns banks against using post-commencement financing to conceal bad loans,” the Governor cautioned, highlighting that transparency in financial reporting remains non-negotiable.

    The central bank expressed concern that some institutions might be leveraging restructuring mechanisms and distress financing tools inappropriately to avoid provisioning for impaired assets, thereby presenting a misleading picture of their balance sheets.

    Target Set: 10% NPL Ratio by End of 2026

    To ensure stability and enforce discipline within the banking industry, the central bank has established a firm target for balance sheet cleanup over the next two years.

    The BoG Governor officially directed all commercial banks to reduce their Non-Performing Loan (NPL) ratios to a maximum of 10% by the end of 2026.

    “The Bank of Ghana has directed banks to reduce their Non-Performing Loan ratio to 10% by the end of 2026,” the Governor stated, underscoring that achieving this benchmark is vital for safeguarding depositors’ funds and restoring confidence in the banking sector.

    Financial analysts have welcomed the central bank’s firm stance, noting that bringing NPL levels down to targeted thresholds will lower the cost of credit, boost profitability, and ultimately allow banks to perform their core role of intermediation more efficiently.

    Banks are expected to submit detailed action plans outlining their strategies for loan recovery, write-offs, and risk mitigation to meet the mandatory deadline.

     

  • Ghana leads African economic resilience through local market reforms

    Ghana leads African economic resilience through local market reforms

    By Adnan Adams Mohammed

     

    …as Dr. Johnson Asiama details how home-grown financial structures saved the domestic economy from collapse at a prestigious gathering of central bankers in Basel,

     

    In a powerful address to the continent’s top banking regulators, Bank of Ghana Governor Dr. Johnson Asiama revealed how building robust local debt markets served as the ultimate firewall for Ghana’s battered economy, offering a definitive roadmap for neighboring nations seeking to break their dependence on foreign capital.

    Addressing the Bank for International Settlements (BIS) Roundtable of Governors from African Central Banks on Saturday, June 27, 2026, Dr. Asiama dissected Ghana’s trajectory from fiscal turbulence to stabilization. His focus centered entirely on the crucial role of deepened domestic debt markets in fortifying economies against unpredictable external shocks while preserving hard-won macroeconomic stability.

    “Ghana’s economic journey from crisis to recovery offers important lessons on the growing role of domestic debt markets in strengthening resilience while safeguarding financial stability,” Dr. Asiama said.

     

    A blueprint forged in fiscal turbulence

    The core of Dr. Asiama’s presentation leaned heavily on Ghana’s real-world policy shift following a grueling period of market corrections and institutional adjustments. Historically reliant on international Eurobond markets and foreign-denominated loans, the West African nation faced immense pressure when global macroeconomic shifts triggered capital flight.

    Rather than relying entirely on conventional external bailouts, Ghana pivoted inward. By aggressively restructuring local credit channels and restoring confidence in domestic bonds, the country managed to stabilize the cedi, lower runaway inflation, and establish an economic foundation built to weather future global storms.

    The Governor cautioned that as African economies pivot increasingly toward domestic borrowing to underwrite development and meet fiscal obligations, policy architects must make the cultivation of deeper, more diversified capital markets a strategic priority. This shift is no longer a temporary safety valve but a permanent structural necessity.

    Strategic priorities for continental growth

    According to Dr. Asiama, developing these markets requires more than just issuing local treasury bills; it demands structural depth, transparent regulatory frameworks, and a diverse investor base that includes local pension funds and insurance companies.

     

    Key Pillars of Domestic Debt Expansion Strategic Benefit

    Investor Base Diversification Reduces reliance on volatile foreign institutional money.

    Orderly Price Discovery Ensures fair interest rates determined by stable local metrics.

    Enhanced Financial Infrastructure Minimizes transaction risks and builds local investor confidence.

     

    Dr. Asiama said well-functioning domestic debt markets would be critical to enhancing economic resilience, improving financing options, and supporting long-term sustainable growth across the continent.

    Redefining African economic agency

    The high-level roundtable convened governors of African central banks for a candid exchange on macroeconomic trajectories, financial sector fortitude, and the policy imperatives shaping the region’s economic future. The consensus in the room pointed to a growing realization that relying on external debts leaves African development hostage to international rate hikes and external monetary tightening.

    With Ghana’s experience now cast as a reference point, Dr. Asiama’s intervention underscores a broader continental imperative to transform domestic capital markets from peripheral instruments into central pillars of sustainable growth and sovereign economic agency. Moving forward, the blueprint established in Accra is expected to serve as a framework for regional central banks aiming to insulate their populations from global economic volatility.

     

  • Relief at the Pumps: Fuel prices see sharpest drop in months …as easing global conflicts open policy space for Central Bank

    Relief at the Pumps: Fuel prices see sharpest drop in months …as easing global conflicts open policy space for Central Bank

    By Adnan Adams Mohammed 

     

    In a major development for consumers and macroeconomic planners alike, retail fuel prices across Ghana are undergoing their sharpest decline in months.

    The localized drop follows a major de-escalation of international geopolitical conflicts, providing immediate breathing room for household budgets and strengthening the state’s path toward financial stabilization.

    Leading Oil Marketing Companies (OMCs) have aggressively cut pump prices, with petrol falling to GH¢13.87 per litre at major retail stations.

    The downward pricing shift is tied to a plunge in global crude oil benchmarks, which dropped below US$80 a barrel following diplomatic breakthroughs and an unexpected stabilization of tensions between the United States and Iran.

    Global De-escalation Drives the Plunge

    The abrupt reversal of global oil risks has injected fresh optimism into the domestic downstream petroleum sector. Over the past year, international shipping routes and crude production had been severely choked by ongoing conflicts involving major world powers and Middle Eastern nations, artificially inflating freight, logistics, and insurance premium overheads.

    Dr. Riverson Oppong, the Chief Executive Officer of the Chamber of Oil Marketing Companies (COMAC), voiced strong optimism that this international stabilization will provide sustained, long-term relief to Ghanaian consumers.

    “We are highly optimistic that stabilizing Iran-US tensions and a potential formal agreement could firmly push and sustain crude oil prices below the US$80 mark,” Dr. Oppong stated following a market review. “The localized drop starting this pricing window is a direct reflection of structural ease on the global market. If these international diplomatic gains hold, Ghanaian consumers will continue to enjoy consecutive rounds of relief at the pumps.”

    The Hidden Cost of War

    Despite the celebration surrounding the current price cuts, energy industry advocates note that domestic fuel prices remain heavily burdened by external geopolitical realities.

    Offering a sobering analysis of the structural mechanics behind fuel pricing, Dr. Patrick Ofori, the Chief Executive Officer of the Chamber of Bulk Oil Distributors (CBOD), revealed that without the compounding costs of global conflicts, fuel prices in Ghana would be exponentially lower than current retail figures.

    “If there was no war, and looking at where the Bank of Ghana auction rate stands today, Ghanaians would be buying these petroleum products at around GH¢9 or GH¢10 per litre at the very most,” Dr. Ofori explained. “The geopolitical disruptions over the last year pushed freight rates up five-fold and forced maritime insurance premiums to jump from $3 million to as high as US$17 million for single vessels. While we are happy with the current reduction to GH¢13.87, the reality is that local consumers are still paying an unearned premium due to international instability.”

    Dr. Ofori added that Ghana’s continued exposure to these global market shocks underscores the urgent need for the state to establish long-term funding mechanisms to build a resilient strategic petroleum reserve.

    A Major Victory for the Central Bank’s Disinflation Goal

    Beyond immediate relief for drivers and commercial transport operators, the plummeting cost of fuel serves as a major strategic victory for national monetary policy. High fuel prices have historically served as a rapid pass-through catalyst for food and core inflation across the country.

    Addressing financial stakeholders on the changing economic landscape, the Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, indicated that the easing of Middle East geopolitical risks has arrived at a critical juncture, fundamentally shifting the central bank’s policy horizons.

    “Lower global oil risks may significantly strengthen Ghana’s ongoing disinflation path,” Governor Asiama noted. “The cooling of energy supply shocks improves our baseline inflation outlook and, if these trends are structurally sustained over the coming quarters, it will create vital policy space for the monetary authorities to consider further policy rate easing.”

    With the central bank hinting at a potential lowering of commercial borrowing costs and OMCs signaling room for further pump reductions, the country’s broader business community is expressing rare optimism. If the global energy corridor remains free of active conflicts, the current retail price correction could mark the beginning of a sustained economic turnaround for the country.

     

  • Falling global oil risks open critical policy space for Central Bank’s disinflation agenda – Dr Asiama

    Falling global oil risks open critical policy space for Central Bank’s disinflation agenda – Dr Asiama

    By Adnan Adams Mohammed

    The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has indicated that the recent de-escalation of geopolitical risks in the Middle East could significantly strengthen Ghana’s domestic disinflation path, potentially clearing the way for a more accommodative monetary policy stance.

     

    Speaking directly to heads of commercial banks in Accra, Dr. Asiama revealed that a pending diplomatic framework agreement between Iran and the United States has fundamentally altered the central bank’s short-term macroeconomic projections.

    The international de-escalation has significantly reduced risk premiums embedded in energy markets, opening up a vital window of opportunity for the central bank to lock in structural price stability.

    Altering the Inflation Outlook

    The central bank’s optimistic assessment follows a period of acute anxiety within the Monetary Policy Committee (MPC). At its last statutory sitting, where the policy rate was held steady at 14 percent, the committee had flagged prolonged external supply chain disruptions as a primary threat to consumer price stability, despite the relative resilience of domestic output.

    However, the unexpected cooling of international shipping bottlenecks particularly surrounding the vital Strait of Hormuz has altered the risk matrix.

    “When the Committee last met, it assessed the domestic economy as resilient despite a complex and volatile global environment,” Governor Asiama stated during the high-level meeting. “The Committee noted that although inflationary pressures remained contained, potential risks persisted, especially those associated with prolonged geopolitical tensions. Clearly, the outlook since yesterday has now changed, and we are monitoring events in the coming days and weeks until the next meeting of the MPC.”

     

    Easing the Imported Inflation Pass-Through

    For an economy heavily reliant on imported refined petroleum, the global oil correction has immediate, far-reaching benefits for the central bank’s inflation-targeting framework. High fuel prices have historically acted as a rapid pass-through catalyst into the domestic economy, driving up transport fares, manufacturing overheads, and food distribution costs.

    Central bank analysts note that sustained crude prices below the $80 a barrel mark will help choke off this imported inflation at the source. By lowering the cost of energy inputs, the cooling external environment provides a direct tailwind to the ongoing disinflation process, making it significantly easier for the BoG to anchor long-term inflation expectations.

    Moreover, the central bank’s ability to maximize these global gains is reinforced by its aggressive reserve-building strategy. Having built a dense international reserve cushion, the BoG is well-positioned to maintain exchange rate stability. When a stabilizing cedi is paired with falling international commodity prices, the combined effect drastically reduces the cost of imported goods, accelerating the drop in headline inflation.

    Creating Policy Space for Rate Cuts

    The primary structural benefit of this disinflation momentum is the financial flexibility it grants to monetary authorities. If current trends hold and consumer price metrics continue to drop, the central bank will have the necessary justification to ease its tight monetary stance, potentially lowering the 14 percent policy rate during upcoming MPC cycles.

    A reduction in the central bank’s benchmark rate would trigger a corresponding drop in commercial banking lending rates, which have historically stunted private sector growth. Business associations have long argued that high borrowing costs restrict industrial expansion and squeeze corporate liquidity.

    While Governor Asiama stopped short of signaling an immediate, definitive policy pivot, his remarks strongly suggest that the changing external risk profile has laid the groundwork for a more supportive economic environment. If global energy lines remain free of conflict, the central bank’s disinflation agenda could soon transition from a defensive inflation-containment strategy into an active catalyst for cheaper commercial credit and nationwide business growth.

     

  • Inflation hits historic low as BoG credits “prudent management”

    Inflation hits historic low as BoG credits “prudent management”

    By Adnan Adams Mohammed

    In a milestone for Ghana’s macroeconomic recovery, year-on-year inflation plummeted to 3.3% in February 2026, marking the lowest rate since the Consumer Price Index (CPI) rebasing in 2021.

    The latest data from the Ghana Statistical Service (GSS) reveals a staggering 19.8 percentage point drop from the 23.1% recorded exactly one year ago. This 14th consecutive monthly decline signals a sustained easing of price pressures that has significantly bolstered the Bank of Ghana’s (BoG) recent policy stance.

    The disinflation trend was largely driven by a cooling food market and the stability of imported goods.

    Food Inflation: Dropped to 2.4% from 3.9% in January.

    Imported Items: Saw a sharp easing to 0.6%, credited largely to the cedi’s strong performance.

    Regional Variance: The Savannah Region recorded the country’s lowest rate at -2.6%, while the North East Region hit a high of 8.9%.

    “A price worth paying”

    Reacting to the figures, Bank of Ghana Governor Dr. Johnson Asiama attributed the record lows to “prudent management,” specifically pointing to the sharp appreciation of the cedi and aggressive monetary sterilization measures.

    Addressing recent concerns regarding the central bank’s financial losses and the costs of the Gold for Reserve (G4R) programme, Dr. Asiama was candid about the trade-offs involved in resetting the economy.

    “This was delivered at a cost,” the Governor noted in an explanatory note. “But what is the real benefit to the economy? We have achieved historically low inflation and a cedi that has appreciated by more than 40%—the best performance in our history.”

    Outlook: A leaner, stronger 2026

    Dr. Asiama expressed confidence that the heavy fiscal lifting is over. He projected that as inflation settles at the lower end of the BoG’s 8 ± 2% medium-term target, the costs of maintaining these levels will “drop sharply.”

    Key pillars for the BoG’s 2026 outlook include:

    Reduced Sterilization Costs: With inflation at 3.3%, the policy rate is expected to decline, lowering the cost of mopping up excess liquidity.

    Gold for Reserve Reforms: Fees and charges for the G4R program have already been halved.

    Cedi Stability: The BoG expects the currency to remain stable throughout the year, preventing a repeat of previous valuation-led losses.

    While some analysts warn that the aggressive policy interventions came at a high institutional cost to the central bank, the GSS data suggests that for the average Ghanaian consumer, the “reset” is finally yielding tangible relief at the marketplace.

    At a glance: Ghana’s inflation journey

    Period Inflation Rate Milestone

    February 2025 23.1% Post-Crisis Peak

    January 2026 3.8% Targeting the Lower Bound

    February 2026 3.3% Lowest since 2021 Rebasing

     

     

     

     

  • Time to look beyond monetary policy to economic restructuring

    Time to look beyond monetary policy to economic restructuring

    This week, the Bank of Ghana’s Monetary Policy Committee will meet for the first time this year, and their deliberations will culminate in a decision on where the central bank’s benchmark Monetary Policy Rate will stand for the next two months.

    There have been tremendous improvements in various key macroeconomic performance indicators over the past year inflation has dropped to a long term low, taking interest rates down with it, the cedi has enjoyed historic appreciation against the United States dollar and has stabilized at a rate barely two-thirds of what it was as at late 2024, the merchandize trade surplus has reached a record high and so have gross international reserves.

    Consequently, the universal expectation is that yet another cut in the MPR will be announced this week, with the benchmark rate’s current 18% – even though 1,000 basis points lower than the 28% it stood at during the first half of 2025 now more than three times the 5.4% headline consumer inflation rate recorded for December.

    But even as the private sector enthusiastically look towards yet another round of consequent interest rate cuts, the BoG Governor, Dr Johnson Asiama late last year correctly warned that monetary policy on its own cannot ensure the sustained stability of the country’s economy.

    The initial hawkish monetary stance of the BoG, combined with government’s fiscal restraint and consequent consolidation worked to bring inflation down sharply, before the central bank began its historically steep cut in its benchmark interest rate between late July and now. Instructively, government has still not opened the fiscal taps and the BoG has kept a tight lid on liquidity growth even as has pushed interest rates downwards.

    But while all this has reaped huge rewards with regards to macroeconomic stability, its sustainability will depend on collective efforts by government, the BoG, the private sector and the general populace, to both increase non-traditional exports and even more importantly, reduce import dependency.

    These efforts have to be directed towards a less external sector driven, more sustainable external macro-economic balance. To be sure, Ghana is now achieving a bigger merchandise trade surplus than at any other time over the medium to long term. But this is primarily the result of the unprecedented surge in the gold price on the international market which will not last much longer even though the rising import bill will, in the face of cheaper foreign exchange and cheaper credit with which to buy it.

    It is imperative therefore that Ghana both cuts its dependency on imports and diversifies its sources of forex, outside of simply borrowing it in inordinate quantities, which created the economic mess the country is only now rebounding from in the first place.

    Fiscal policy and the BoG’s forex sales allocations need to deliberately support efforts in both of these regards. This means import substitution and non-traditional export promotion.

    To be sure, Ghana has aspired for both for a long time now. But non-traditional export promotion has taken precedence without due consideration for increased local value added and consequently, the import bill has continued to rise inordinately even as increased NTE revenues have been sticky.

    We therefore welcome the government’s emphasis on import substitution as a policy priority, since it should be easier to reduce import consumption than to increase NTE sales.

    Without achieving both however, Ghana’s impressive economic rebound will not be sustainable.

     

     

     

     

     

  • BoG, Dr Asiama applauded for the landmark NIBF framework  …amid smeared attempts by some ‘rented’ voices to mar the vast opportunities 

    BoG, Dr Asiama applauded for the landmark NIBF framework  …amid smeared attempts by some ‘rented’ voices to mar the vast opportunities 

    Ghana’s financial sector is abuzz with excitement as Bank of Ghana Governor, Dr. Johnson Asiama, receives widespread acclaim for his outstanding leadership in spearheading the development of the Non-Interest Banking and Finance (NIBF) framework.

     

    Through extensive stakeholder consultations and training, the Central Bank’s expert team has successfully crafted a framework that promises to revolutionize Ghana’s financial landscape.

     

    The NIBF framework is poised to boost financial inclusion, drive diversification, and provide Ghanaians with more choices for financial services.

     

    Dr. Asiama’s inclusive approach has been lauded by many, as he engaged with diverse groups, including both Christian and Islamic faith leaders, industry experts, and civil society organizations, to ensure the framework reflects a collective understanding .

     

    The NIBF framework is designed to promote fairness, transparency, and risk-sharing, aligning with fair principles. Its introduction is expected to attract new investment sources, deepen financial inclusion, and position Ghana as a regional hub for Investment and inclusive finance.

     

    Despite Ghanaians hailing Dr. Asiama’s efforts, recognizing the potential of the NIBF framework to transform the country’s financial sector and drive economic growth, a few voices are deliberately trying to seek attention from the media to launch an attack against the financial inclusive system and the person of Dr. Asiama.

    Dr. Asiama believes tolerance in understanding the process and introducing religious hard-line to a banking model is unfair to the economy.

     

    The Bank published the ‘Exposure Draft Framework’ last week calling for inputs within a period of two weeks which lapses on December 24, 2025. Yet, it is surprising to note that some individuals have resorted to spreading deliberate misinformation, misrepresentation of facts and knowledge publicly about the NIBF.

     

    This portal has intel that, some voices at University of Ghana and some voices within the think-tank space have been engaged by some individual businessmen to launch a calculated attack against the Governor of Bank of Ghana and the framework seeking to incite religious agitation.

     

    This portal will soon publish names of these individuals to expose their ill-intent attempt to stifle and hijack the bigger interests of Ghanaians.

     

    What inspires this portal is consistent manner in which Dr. Asiama ensured the engagements were concluded.

     

    By Adnan Adams Mohammed

  • Ghana’s bond market to anchor Africa’s capital market integration – BoG Governor

    Ghana’s bond market to anchor Africa’s capital market integration – BoG Governor

    Ghana’s fixed-income market is fast emerging as one of Africa’s most credible and resilient bond platforms, with GHc214 billion in turnover so far in 2025.

     

    According to Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama the milestone marks not just a recovery from Ghana’s recent debt crisis but the beginning of a new era of regional financial leadership.

     

    Speaking at the 10th Anniversary of the Ghana Fixed Income Market (GFIM) in Accra, Dr. Asiama said Ghana’s bond market is now well-positioned to anchor regional capital market integration under the African Continental Free Trade Area (AfCFTA) Financial Integration Framework.

     

    “Our goal is to make Ghana the reference point for transparency and innovation in African fixed-income markets. “We have moved from rebuilding trust to leading by example.” he said.

     

    The Governor added that Ghana is aiming to become a regional benchmark for transparency, innovation, and sustainability, much like Nigeria’s FMDQ and Morocco’s Casablanca Finance City, both of which have become continental hubs for financial services.

     

    The transformation follows a turbulent period for Ghana’s financial markets. During the domestic debt exchange, trading volumes on the GFIM plunged from GHc 230 billion in 2022 to just GHc 98 billion in 2023 as confidence in the government’s fiscal credibility waned.

     

    However, by October 2025, trading activity had rebounded to GHc 214 billion, signaling a strong resurgence of investor confidence and a restored sense of market stability.

     

    Dr. Asiama described the episode as both a financial and emotional test for Ghana’s economy one that taught policymakers three crucial lessons.

     

    “Credibility is capital, without it, no reform endures. Predictability breeds confidence – markets price stability before they price returns. And coordination is protection – fiscal and monetary policies must align,” he said.

     

    The Governor credited the sharp rebound to enhanced coordination between fiscal and monetary policy, as well as consistent efforts by the Bank of Ghana and the Ministry of Finance to restore market discipline.

     

    He noted that Ghana’s broader macroeconomic turnaround including inflation dropping from 54 percent to 8 percent, a 35 percent appreciation of the cedi, and reserves covering nearly five months of imports — has bolstered investor sentiment and deepened liquidity on the GFIM.

     

    “Behind every decline in inflation lies a rise in discipline, and behind every cedi of appreciation lies a recovery of trust,” Dr. Asiama said, adding that Ghana’s bond market has once again become a mirror of the country’s economic recovery.

     

    With its renewed credibility and modern trading infrastructure, Ghana’s fixed-income market is being positioned to play a pivotal role in continental capital market integration.

     

    Dr. Asiama said the next decade of GFIM’s growth will focus on depth, diversity, and digitalisation creating a market that not only trades bonds but transforms economies.

     

    “This anniversary is not just a celebration of a platform, but of partnership,” he said. “Together, we can deepen markets, expand possibilities, and secure Ghana’s financial future.”

  • Reforms to secure long-term macroeconomic stability – Ghana’s economy managers buzz int’l investors

    Reforms to secure long-term macroeconomic stability – Ghana’s economy managers buzz int’l investors

    Key managers of Ghana’s economy have buzzed international investors and development agencies with assurance of sustaining the current economic reforms and gains.

    In separate sessions of meetings with development partners, Ghana’s Minister of Finance and the Governor of Bank of Ghana exhumed confidence and optimism of putting the economy on a remarkable structural and fiscal reforms that will secure a long-term macroeconomic stability.

    During a sideline event of the 2025 IMF and World Bank Annual Meetings while speaking to a packed audience of investors in Washington, Minister for Finance, Dr. Cassiel Ato Forson, expressed strong optimism about the sustainability of the ongoing structural and fiscal reforms, which he said are designed to secure long-term macroeconomic stability.

    “Ghana is on track. We will sustain the gains”, Dr Forson said.

    Also, Governor of the Bank of Ghana, Dr. Johnson Asiama, speaking at the IMF/World Bank Governor Talk Series in Washington D.C., under the theme “From Crisis to Confidence: Ghana’s Journey to Macroeconomic Stabilisation”, boasted that “growth has rebounded, inflation has cooled, and Ghana is now outperforming expectations under the IMF programme.

    “Inflation, which stood at 23.5 percent in January 2025, has since dropped to 9.4 percent in September the first single-digit rate in four years, beating the government’s 11.9 percent target.”

    Dr. Asiama reaffirmed the central bank’s commitment to sustaining macroeconomic stability through prudent policy management and market confidence restoration.

    Improved indicators

    Dr Forson, in his statement underscored that, the country’s economic turnaround is already evident in declining debt vulnerabilities and stronger macroeconomic fundamentals, reflecting the effectiveness of government policy interventions and reforms.

    Consequently, Ghana’s economic growth is projected to rebound strongly in the final quarter of the year, as the second quarter grew 6.3% according to Ghana Statistical Service data, led by a revitalised real sector, while inflation, which has already seen significant declines, is expected to ease further and remain in single digits by year-end.

    “The government remains on course to achieve a positive primary balance of 1.5% of GDP by the close of the fiscal year, a milestone that will further consolidate the gains made under ongoing fiscal reforms.

    Ghana’s recovery

    Dr Asiama indicated that Ghana’s economy has made a firm recovery after years of instability, describing the country as being “back on track” following months of policy discipline and reform. While he reflected on the state of the economy when he assumed office.

    “We came to meet a challenged economy in the sense that remember we had a domestic debt issue in 2022, fiscal policy was highly expansionary. It led to us exiting the international financial market. There was resort to domestic financing.

    “We remember all the sovereign downgrades we had to suffer. We came into office with a lot of liquidity, high inflation, [and] an exchange rate that was depreciating widely,” he said.

    He disclosed that at the time, there were even discussions on whether Ghana should cancel its IMF-supported programme, as doubts loomed over the country’s ability to meet its targets.

    “And I remember when we came in there were talks about if we should cancel the programme altogether, there were doubts as to whether we will be able to carry on the programme.

    “But I am happy to say that eight months down the road we have turned the corner. Ghana is back,” Dr. Asiama declared.

    Fiscal consolidation

    Dr. Forson reaffirmed the government’s dedication to implementing fiscal consolidation measures anchored on tight expenditure controls and prudent financial management.

    This comes as the ministry has revealed that, over 70 public sector entities, including several Metropolitan, Municipal and District Assemblies (MMDAs), have complied with the Public Financial Management (PFM) Commitment Control and Expenditure Management Measures issued by the Minister for Finance on May 2, 2025.

    The compliance update follows the submission of quarterly commitment control review reports to the Internal Audit Agency (IAA), in line with efforts to strengthen fiscal discipline and improve expenditure efficiency across government institutions.

    The Ministry’s guidelines were designed to ensure that public entities commit and spend within approved budgetary limits, prevent the accumulation of arrears, and enhance transparency in the management of public funds.

    Some of the institutions are GoldBod, Tema Oil Refinery, Ghana Enterprise Agency, Public Utilities and Regulatory Commission, Rent Control Department, State Interests and Governance Authority, Venture Capital Trust Fund, Department of Parks and Gardens.Ghanaian Events Calendar

    Others include, NaCCA, Office of the Head of Civil Service, Office of the Administrator of Stool Lands, some Ministries, some Colleges of Education and MMDAs.

    This high compliance rate signals increasing adherence to fiscal responsibility principles and improved coordination between internal auditors and spending officers.

    The next phase is expected to focus on deepening real-time expenditure monitoring, addressing non-compliant entities, and promoting greater accountability across the public financial management ecosystem.

    The move aligns with the government’s broader PFM reform agenda, which seeks to consolidate gains in macroeconomic stability, control public spending, and strengthen the integrity of Ghana’s fiscal management framework.

     

    By Adnan Adams Mohammed

  • Cedi appreciation slowed remittances, we had to step in, says BoG Governor

    Cedi appreciation slowed remittances, we had to step in, says BoG Governor

    Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, says the central bank was compelled to support the foreign exchange market after the sharp appreciation of the cedi slowed remittance inflows.

    Speaking in Washington DC on the sidelines of the IMF/World Bank Spring Meetings, Dr Asiama said the appreciation, which was initially seen as a positive signal, unexpectedly reduced the volume of foreign transfers coming into the country.

    “Remittance inflows is another huge source of FX injection. You are looking at over US$6 billion per year in remittance inflows. However, immediately after the currency appreciated, we saw a decline,” he explained.

    He said this development came at a time when the central bank was making large external payments, creating pressure on the local market.

    “Between the second and the third quarter, we had to do a number of lumpy payments. There were all these large arrears in payments to some of the IPPs — billions of US dollars.

    “We also had domestic debt affected bondholders that wanted to exit because the currency had appreciated. We had to allow them to go,” Dr Asiama said.

    He noted that these “lumpy payments” between July and August coincided with a dry spell in the interbank foreign exchange market.

    “Because all these inflows accrue to the central bank, and it was happening at the time when we saw a decline in remittance inflows, the central bank needed to step in,” he said.

    “The interbank FX market had dried up during that time, and so the central bank needed to provide that support.”

    Dr Asiama rejected suggestions that the Bank of Ghana had intervened excessively in the foreign exchange market, insisting the move was necessary to maintain stability.

    “Yes, there were allegations about whether we were intervening in the market, but that was not exactly the case,” he said.

    “All we seek to do is to limit the volatilities in the markets, to ensure that we have that smooth dynamics in the market, and that’s the framework we’ll maintain going forward.”

    He disclosed that the situation has since improved, with increased activity in the interbank market.

    “We have written to the mining firms, for example, to take all their inflows through the commercial banks. We are beginning to see some pickup in activity in the interbank FX market,” he said.

    He explained that gold proceeds are an exception, as those go directly to the central bank’s reserves.

    Dr Pandit stressed that the Bank of Ghana does not “over support” the market but acts to smooth volatility and maintain balance.

    “With activity picking up in the interbank FX market, the central bank wouldn’t have to be that present,” he added.