SWEARING-IN CEREMONY AS GOVERNOR OF THE BANK OF GHANA
Johnson Pandit Asiama (PhD)
Governor, Bank of Ghana
February 25, 2025
Excellency, The President,
Excellency, The Vice President,
Honourable Ministers of State,
Distinguished Guests, Ladies and Gentlemen
It is with profound humility and a deep sense of responsibility that I stand before you today, honoured by the trust that has been reposed in me to serve as the Governor of the Bank of Ghana. Let me extend my sincere gratitude to His Excellency, the President and her Excellency the Vice President for this appointment, and to the Council of State for the endorsement of my appointment. Let me also acknowledge the unwavering support of my family, colleagues, friends, and mentors who have contributed to my career journey thus far.
Under the leadership of His Excellency the President, Ghana is embarking on an economic reset. This reset is about stabilizing the macroeconomy and addressing key issues such as high inflation, persistent fiscal deficits, and excessive debt levels. Achieving this stability will require monetary and exchange rate policy reforms, fiscal austerity measures, and debt restructuring to reduce fiscal risks and create a stable economic environment.
Excellency, we are meeting today at a pivotal moment in our nation’s economic history. The challenges before us require decisive leadership and prudent macroeconomic policies to reset the economy. Indeed, the Bank of Ghana is a key institution in this agenda to reset the economy and must remain steadfast in its mission to maintain price stability, ensure a sound financial system, and support economic growth.
Your Excellency, as Governor, my focus will be on six (6) priority areas:
First, is the need to recalibrate our monetary policy strategy and enhance the policy framework to achieve our mandate more efficiently. Under my leadership, our policies will be clear, predictable, and responsive to emerging threats. We shall adopt a more proactive and precise approach to managing inflation, leveraging on advanced data analytics and artificial intelligence. Also, we shall coordinate policy efforts with other government agencies for example to manage food prices. We shall be consistent in our policy actions to avoid sending conflicting signals as happened in the recent past, and we shall work to enhance monetary policy implementation.
Among others, we shall:
- pursue reforms in the inflation targeting framework to foster more transparency and enhance the effectiveness of monetary policy implementation.
- discontinue the use of differentiated cash reserve requirements, and instead rely on open market operations (OMOs) to manage liquidity conditions.
- improve our communication regime and ensure regular dialogue with banks on regulatory matters.
We are confident that current levels of inflation will gradually trend back to target range and within the forecast horizon.
My second priority is on the need to preserve exchange rate stability and limit excessive volatility in the rates. The days of currency speculation and exchange rate instability must come to an end, and we are poised to ensure this happens. In this regard, the Bank of Ghana under my leadership will engineer a well-functioning, and stable foreign exchange market to support economic activity.
Among others, we will:
- implement strategic interventions, including the enactment of a new foreign exchange law to replace the Foreign Exchange Act 2006 (Act 723).
- implement targeted market operations to eliminate leakages of forex and improve our reserves management.
- deepen our participation in the Pan African Payment and Settlement System (PAPSS), allowing Ghanaian businesses to trade across Africa using local currencies instead of always relying on the US dollar.
- implement further reforms in the remittance space and collaborate with the Fintech and remittance agencies to harness remittances as a major source of FX.
- introduce structured and transparent systems that ensure fair pricing and fair distribution in the forex market.
- leverage our gold reserves and strategic foreign assets more effectively to support the Ghana cedi.
- reform the Bank of Ghana’s Domestic Gold Purchase Programme to improve efficiency, enhance reserve accumulation, and increase transparency in gold transactions.
Excellency, through these measures, we will build a more resilient foreign exchange market that inspires confidence among i n vestors and businesses.
Third among my priority areas is the need to realign our regulatory mandate to promote greater levels of financial intermediation to support economic growth. While our banking sector remains broadly stable after the recent crises, it requires targeted reforms to address legacy challenges and ensure continued resilience. Under my stewardship, we shall enforce strict prudential regulations while fostering an enabling environment for responsible lending and innovation in the banking sector.
We shall:
- tackle the problem of high non-performing loans (NPLs) and weak risk management practices in the industry.
- work closely with banks to reduce the high incidence of cybersecurity breaches and strengthen capital adequacy requirements.
- update the Banks and Specialized Deposit-Taking Institutions Act, 2016 (Act 930) which was passed during your tenure in 2016, to enhance our resolution framework, and ensure that distressed institutions are effectively managed while maintaining financial stability.
- work with all stakeholders – including banks, financial institutions, technology partners, businesses, and regulators – to ensure that every Ghanaian; from traders to entrepreneurs, benefit from a financial system that is modern, fair, and built to last.
My fourth priority is on the need to boost financial inclusion and innovation to promote inclusive economic growth, reduce poverty, empower individuals, and ensure the stability and competitiveness of the financial system. It is gratifying to note that Ghana is well-poised to become a regional hub for financial technology and digital assets; and this transformation agenda will be pursued with appropriate safeguards and policies to ensure financial stability, while fostering innovation in the payment ecosystem.
We will:
- introduce a digital strategy to adapt to the digital age, improve our operations, and better serve the needs of our stakeholders.
- continue to support initiatives that expand access to financial services, leveraging fintech and mobile banking solutions to broaden the scope of access, especially in underserved communities.
- work with banks, start-ups and international partners to build a stronger digital finance ecosystem – one that supports secured transactions, faster cross border payments and financial accessibility for all.
- work towards a clear regulatory framework for digital assets, ensuring that new financial innovations are introduced in a safe and structured manner.
My fifth priority is on the need to promote greater fiscal and monetary policy coordination while maintaining our operational independence. The Bank of Ghana operates independently under the BOG Act 2002 (Act 612), and as amended; and we will uphold this independence while working collaboratively with government and our international partners. To strengthen our independence further, we shall enhance key provisions in the Bank of Ghana Act, 2002 (Act 612) and as amended, to ensure that institutional autonomy is not just a legal principle but a practical reality in our policymaking and operations. We will engage constructively with government and other key stakeholders to always ensure alignment between monetary, fiscal and other policies.
Excellencies, my sixth and final priority area is the need to reverse the Bank of Ghana’s negative equity position to maintain financial stability, credibility, and public trust. In this vein, we will seek to re-examine the Bank’s non-core operations where savings could be made. We shall adopt several austere measures to help reduce the Bank’s operational costs and achieve cost efficiency. Additionally, we will craft very clear policies to return the Bank’s negative equity to positive equity in the medium term.
Conclusion
Excellency, the reset path we have embarked on is more than mere sloganeering. It is about restoring public trust, rebuilding confidence, and ensuring that Ghana’s economy is stable, innovative and ready for the future. Through responsible financial sector governance, digital tran s formation, and sound economic policies, we will create an economic and financial system that is transparent, predictable, and stable. Businesses will have the confidence to plan, and individuals will have access to a secure financial system that fosters growth and opportunity.
As I take this oath of office, I do so with a solemn promise to the people of Ghana. That is to serve with diligence, impartiality, and unwavering commitment to the mandate of the Bank of Ghana. In this regard, I will carry out my duties, guided by no interests other than the interests of the people of Ghana.
And I know I can count on your support, partnership, and trust as we embark on this journey together for God and for country.
Excellencies, I thank you for your attention.
End.
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