Newly sworn-in Governor of the Bank of Ghana (BoG), Dr Joshnon Asiamah has said that his priority is on the need to preserve exchange rate stability and limit excessive volatility in the rates.
Speaking after his swearing-in on Tuesday, February 25, he said “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, he said, the Bank of Ghana under his leadership will engineer a well-functioning, and stable foreign exchange market to support economic activity.
Among others, he said they “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.”
Through these measures, he said they will build a more resilient foreign exchange market that inspires confidence among investors and businesses.
Dr Asiama further said that the BoG under his leadership will deepen their independence while also engaging constructively with the government and key stakeholders.
“My 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,” he said.
Dr Asiama further said that the BoG will work to ensure that its negative equities are turned into positives.
He stated that “My 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.”
