…VOWS TO Reshape Ghana’s Economy
The newly appointed Bank of Ghana (BoG) governor, Dr. Johnson Pandit Asiama, has detailed a comprehensive plan consisting of six major policy initiatives, which he, along with 1st Deputy Dr. Zakaria Mumuni, intends to implement to bolster the teetering economy.
During a brief inauguration ceremony conducted by President John Mahama on Tuesday, February 25, Dr. Asiama announced their intention to introduce a new forex law to leverage gold reserves and enhance the effective management of foreign assets for Cedi stabilization purposes.
The forthcoming law is planned to replace the 2006 foreign exchange law Act 723, according to Dr. Asiama, who also mentioned their commitment to expanding financial inclusion through digital services, establishing a clear framework for fintech and digital assets, enhancing fiscal and monetary policy coordination, and safeguarding the independence of the BoG.
Furthermore, the new governor pledged to restore the financial position of the BoG through austerity measures, policies, and cost-cutting interventions aimed at reversing the existing negative equity status.
Dr. Asiama emphasized, “Our primary focus will be on six key areas. Firstly, we will recalibrate our monetary policy strategies to enhance the policy framework for more efficient mandate achievement.
Our policies will be transparent, predictable, and responsive to emerging trends. We will adopt a proactive and precise approach to managing inflation leveraging advanced data analytics and artificial intelligence, while coordinating efforts with other government agencies.
Additionally, we will pursue inflation reforms to enhance policy transparency and effectiveness, discontinuing the use of differentiated cash reserve requirements in favor of open market operations.
Improving our communication regime, maintaining consistency in policy actions, and enhancing monetary policy implementation are also among our priorities.”
He continued, “Our second priority is preserving exchange rate stability and reducing excessive rate volatility. We are determined to end currency speculation days and establish a stable foreign exchange market to support economic activities. Strategic interventions will include enacting a new foreign exchange law to replace Act 723, implementing targeted market operations to eliminate forex leakages, and enhancing reserves management.
Participation in the Pan African Payment and Settlement System (PAPS) will be deepened to facilitate local currency transactions for Ghanaian businesses across Africa.”
Regarding the Gold for Oil program, Dr. Asiama affirmed continued commitment to the initiative while pledging to enhance its efficiency by reforming the BoG domestic gold purchase program for increased transparency and reserve accumulation.
President Mahama reiterated his commitment to granting the governor and deputy the autonomy to execute their mandate, emphasizing the departure from previous administrations’ controversial decision to print money to fund expenditures.
Dr. Asiama assumed the governorship following the resignation of his predecessor, Dr. Ernest Addison, who stepped down in early February ahead of retirement after eight years of service.
Initially met with opposition by the parliamentary minority, Dr. Asiama received clearance from the Council of State following consultations by the President.
Formerly serving as the 2nd Deputy Governor during the first term of President Mahama, Dr. Asiama was reportedly compelled to resign in 2018 upon a change in government, despite being far from retirement age.
