Speaking to JoyBusiness on the sidelines of the IMF/World Bank Spring Meetings, he said the revised target is based on new monetary measures by the Bank of Ghana, alongside complementary fiscal actions by the government.

“Look at what is happening to the cedi, as well as the policy action taken at the last Monetary Policy Committee meeting—that should help tackle food inflation and deliver lower inflation going forward,” he stated.

Dr. Asiama confirmed that the next Monetary Policy Committee (MPC) meeting is scheduled for May 22, 2025. “I can assure you that the Bank of Ghana will take the required actions based on our data,” he added.

The revised 12 per cent target marks a sharp cut from the earlier projection of 16 per cent for 2025.

If achieved, it could represent one of the lowest inflation rates Ghana has recorded in recent years. Some analysts suggest it could be the lowest in four years.

Inflation slowed for the third consecutive month in March 2025, reaching 22.4 per cent—down from 23.1 per cent in February.

This trend has reinforced expectations that inflation could continue to ease in the months ahead.

At its last meeting, the MPC raised the policy rate by 100 basis points to 28 per cent in an effort to curb inflation.

Some analysts now believe the Bank may have to hike rates again in May, along with other monetary measures, to meet the revised target.

The International Monetary Fund has also backed further tightening of monetary policy.

In a statement following Ghana’s staff-level agreement with the IMF, the Fund noted: “The ensuing tightening in the monetary policy stance, together with the ongoing fiscal consolidation, is expected to bring inflation down.”

In its Africa Regional Economic Outlook, the IMF projected that Ghana would end 2025 with an inflation rate of 17.5 per cent—significantly higher than the 11.9 per cent forecast in the 2025 Budget by Finance Minister Dr. Ato Forson.

The IMF expects Ghana’s inflation to fall further to 9.4 per cent by the end of 2026, potentially bringing the country closer to achieving single-digit inflation for the first time in years.

In the 2025 Budget, Dr. Forson announced the government’s goal of ending the year with an inflation rate of 11.9 per cent, as part of broader efforts to stabilise the economy.

However, some economists, including Professor Peter Quartey, have described the government’s inflation target as overly ambitious.

He argued that, given the current economic challenges, achieving that goal may be difficult.

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Her academic foundation includes diplomas in Journalism from the Ghana Institute of Journalism (1997) and Politics and Public Affairs Reporting from the International Institute of Journalism in Berlin (2000).

Most recently, she earned certification as a Chartered Executive Banker (CIB-Ghana, 2024), further cementing her credentials in the financial sector.

Her professional journey includes serving as Group Head of Retail Banking at Access Bank Ghana PLC, where she demonstrated exceptional leadership in driving growth and innovation in retail financial services.

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The Treasury had initially aimed to raise GH¢6.14 billion; however, total bids submitted reached GH¢7.26 billion. Despite the oversubscription, the government rejected bids amounting to GH¢570.64 million.

Breakdown figures from the auction reveal that GH¢5.32 billion in bids were tendered for the 91-day bill, of which GH¢5.21 billion was accepted.

The 182-day bill attracted GH¢1.56 billion in bids, with GH¢1.29 billion accepted. Meanwhile, the 364-day bill saw GH¢381 million tendered, but only GH¢192 million was accepted.

Interest rates across the yield curve remained relatively steady, with average rates ranging between 15% and 18%. The yield on the 91-day bill declined slightly to 15.32%, down from 15.45% the previous week.

Similarly, the 182-day bill fell to 16.03% from 16.18%, and the 364-day bill dropped to 18.37% from 18.62%. These trends reflect ongoing efforts by the government to lower its borrowing costs.

Looking ahead, the Treasury intends to raise GH¢6.32 billion in its next auction.

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Speaking to Joy Business on the sidelines of the IMF/World Bank Spring Meetings in Washington D.C., Dr. Asiama assured that the central bank would continue implementing measures to preserve the current stability of the Ghana cedi.

“Going forward, we have enough reserves to maintain the current stability the cedi is enjoying against the US dollar,” Dr. Asiama stated.

However, he was quick to add, “The Bank of Ghana is not going to operate a fixed exchange rate regime. The cedi is an endogenous variable, and we must allow it to float. What the Bank of Ghana aims to do is ensure there is no excessive volatility.”

Reasons Behind the Cedi’s Stability

The Ghana cedi has recorded one of its longest periods of stability against the US dollar in recent times. Since December 2024, the local currency has remained largely stable, even appreciating against the dollar on some days.

Data from the Bank of Ghana and some commercial banks show that, as of April 2025, the cedi had appreciated by 2.76 percent against the dollar.

Bloomberg’s currency platform reported that as of April 28, 2025, most commercial banks were selling the dollar at GH¢15.58, with some quoting GH¢15.40.

Market analysts have attributed the cedi’s resilience to several factors, including active liquidity support from the central bank and BoG’s Gold Purchase Programme, which has boosted market confidence and curbed speculative activities.

The International Monetary Fund (IMF) also highlighted Ghana’s stronger-than-expected international reserve buildup.

According to the Bank of Ghana’s Economic and Financial Data, international reserves reached $9.3 billion at the end of February 2025, significantly exceeding targets set under the IMF’s Extended Credit Facility (ECF)-supported programme.

Governor’s Perspective on the Cedi’s Performance

Dr. Asiama outlined key reasons behind the currency’s stability:

• Improved external sector performance, supported by strong remittances and better earnings from gold and cocoa exports.

• Effective coordination between fiscal and monetary policy, ensuring both sides work harmoniously to strengthen economic fundamentals.

• Weaker US dollar performance globally, creating favourable conditions for the cedi.

He emphasised, “The fiscal side has been supportive of monetary measures, helping to maintain the current development.”

Impact of the IMF Programme

The BoG Governor also noted that the recent Staff-Level Agreement with the IMF has played a crucial role in boosting investor confidence.

“The Staff-Level Agreement with the IMF was like a stamp of approval for the government’s efforts to restore macroeconomic stability,” Dr. Asiama explained.

He added that discipline on both the fiscal and monetary fronts continues to help reset market expectations and restore confidence.

Impact on Inflation

Dr. Asiama expressed optimism that the cedi’s improved performance would contribute to a further slowdown in inflation in the coming months.

“This should be complemented by the monetary measures the Bank of Ghana is implementing to continue driving inflation lower,” he stated.

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During a meeting on Saturday, Georgieva praised the leadership shown by Dr. Forson noting the significant progress Ghana has made under challenging circumstances.

She reaffirmed the IMF’s continued support for the country, stating, “The IMF remains a strong partner of Ghana.”

This high-level endorsement follows the announcement that Ghana has reached a staff-level agreement with the IMF on the fourth review of the Fund-supported program.

Once formally approved by the IMF Executive Board, the agreement will pave the way for the disbursement of approximately 370 million dollars to Ghana.

The achievement is particularly remarkable given that, before the new government assumed office, several structural benchmarks and quantitative targets under the program had been breached.

The breakthrough reflects the aggressive and focused efforts of the Mahama administration to reverse the economic situation and restore confidence in Ghana’s financial management.

Since taking office, the government has accelerated the implementation of structural reforms, delivering results ahead of schedule and bolstering optimism about Ghana’s economic prospects.

A major focus of the administration’s reform agenda has been the resolution of the large accumulation of payables in 2024, which had contributed to a significant primary deficit instead of the modest surplus originally targeted.

To address this, the government has introduced a range of bold and pragmatic measures aimed at strengthening spending controls, restoring budget credibility, and ensuring fiscal and debt sustainability.

In addition to these reforms, the government has already completed a number of structural benchmarks that were originally scheduled for completion at the end of December 2024 and March 2025, underlining its strong commitment to economic recovery.

Also in attendance were governor of the Bank of Ghana Dr. Johnson Asiama, Senior Economic Advisor, Seth Tekper and chairman of the National Development Planning Commission Dr. Nii Moi Thompson.

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This was a purposeful and forward-looking engagement with Ghanaian professionals embedded within the IMF and World Bank systems.

The President of the Heritage Club, Kofi Tsikata, welcomed the delegation and shared that approximately 350 Ghanaian staff are currently working within the IMF and World Bank in Washington. Globally, that number exceeds 700—underscoring the growing influence and presence of Ghanaian professionals in global economic institutions.

Dr. Forson emphasized Ghana’s strong and cooperative relationship with both the IMF and the World Bank.

He noted the recent increase in the World Bank’s Development Policy Operation (DPO) facility to over $400 million as a mark of confidence in Ghana’s reform efforts.

More importantly, he stressed that the focus should not be solely on the amount of borrowing, but on how the borrowed funds are used.

There is now a clear shift toward borrowing for impactful investments rather than non-productive expenditures such as capacity building or consultancy contracts with limited national benefit.

His message was one of financial discipline, strategic planning, and accountability—prioritizing projects that yield tangible benefits for the Ghanaian people.

Bank of Ghana(BoG) Governor, Dr. Johnson Asiama echoed the Minister’s remarks, highlighting the strong technical and policy support received from Ghana’s international partners.

He disclosed that the Bank is currently working on a new legal framework aligned with modern economic realities and supported by the Bretton Woods institutions.

He further indicated that the Bank of Ghana does not expect to declare a loss this year, signaling improved financial management and institutional stability.

Also present at the meeting were Senior Economic Advisor to the President, Seth Emmanuel Terkper, and Chairman of the National Development Planning Commission, Dr. Nii Moi Thompson.

The meeting with the Ghana Heritage Club underscored the important role of the Ghanaian diaspora in global development institutions and reinforced the call for deeper collaboration

between homegrown policy leadership and international expertise. It was not only a moment of reflection but also a strategic conversation about the future of Ghana.

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During the meeting, Mr. Diop expressed the IFC’s keen interest in focusing its investments in Ghana on targeted programmes, suggesting a more strategic approach that could boost productivity and economic returns.

He also noted with surprise that Ghana was not fully leveraging its diaspora, describing it as an untapped resource with immense potential for national development.

Dr. Forson, in response, thanked the IFC for its continued support and extended warm greetings from President John Dramani Mahama, adding that the government would be pleased to welcome Mr. Diop to Accra soon.

He reaffirmed Ghana’s commitment to attracting private sector investment and called for deeper collaboration in infrastructure development and agriculture.

Also present at the meeting was the Governor of the Bank of Ghana, Dr. Johnson Asiama, who emphasised the importance of financial sector cooperation.

He noted that Ghana stands to benefit from the IFC’s support in stabilising and revitalising the specialised deposit-taking institutions that are currently undergoing recovery after sector-wide reforms.

Joining the discussions as well were the Chairman of the National Development Planning Commission (NDPC), Dr. Nii Moi Thompson, and Senior Economic Advisor to President Mahama, Seth Terkper.

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Of these, 83 dismissals — representing 54 percent — were linked specifically to cash theft and suppression, the dominant form of internal financial misconduct.

The report, which covers banks, SDIs, and payment service providers (PSPs), paints a concerning picture of rising insider threats within the financial sector. Staff involvement in fraud jumped by 33 percent in 2024, with 365 employees implicated in various offenses, up from 274 in the previous year.

“Cash theft/suppression remains the most prevalent staff-related fraud, accounting for 75% of reported internal cases,” the report stated. It also noted that despite the scale of offenses, only 43% of staff involved were actually dismissed — a trend blamed on protracted legal procedures that discourage institutions from fully pursuing justice.

The Bank of Ghana expressed deep concern about the “consistent and steady increase in regulated financial institutions’ staff involvement in fraudulent activities,” and called for immediate improvements in internal control systems. It urged banks and SDIs to intensify recruitment background checks, reinforce professional training, and ensure diligent prosecution of offenders to deter future breaches.

The BoG’s 2024 report also documented a broader increase in fraudulent activity across the financial ecosystem. A total of 16,733 fraud cases were recorded last year, up from 15,865 in 2023 — representing a five percent increase. While fraud cases in traditional banks decreased slightly, those within the SDI and PSP sectors saw noticeable rises.

The most dramatic spike was seen in forgery and document manipulation, with the value at risk ballooning to GH¢53.5 million — nearly eight times the GH¢6.9 million recorded in 2023. This category alone accounted for 67 percent of the total fraud value risk recorded by banks and SDIs. The surge was primarily driven by one major outlier case involving GH¢53 million.

Similarly, identity theft saw significant growth, with losses increasing from GH¢0.6 million in 2023 to GH¢5.7 million in 2024. The report attributed this spike to weak due diligence practices and poor verification processes using Ghana Cards.

In total, the value at risk from fraud across banks, SDIs, and PSPs reached approximately GH¢99 million in 2024, up 13 percent from GH¢88 million the previous year. Of this, about GH¢75 million related to risks faced by banks alone.

Despite these high figures, only GH¢3 million — representing four percent of the total at risk — was recovered. The BoG acknowledged that prolonged legal battles remain a major obstacle to recovering stolen funds and restoring public confidence.

The Payment Service Provider (PSP) sector alone recorded 15,673 fraud cases, with a value at risk of GH¢19 million, representing increases of seven percent and 18 percent, respectively.

The BoG urged continued collaboration between financial institutions and law enforcement agencies to create a “zero-tolerance culture” toward fraud. It said it will continue publishing the annual fraud report to promote transparency and safeguard the integrity of Ghana’s financial sector.

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Vice President of IMANI Africa, Bright Simons, has criticized the government’s planned early exit from the IMF programme, calling it a “classic case of good optics, bad economics.”

Speaking on Joy News’ PM Express Business Edition on Thursday, April 24, he accused both the government and the IMF of elevating appearances over substance.

“If the IMF will do a victory lap dance, the government will join them,” he said.

“And then we’ll conclude by 2028 that we will not have met those targets.”

Bright Simons believes the looming exit does not signify real fiscal consolidation.

“By that time, we’re not in the program. So the question then becomes: did we need the program to meet the targets? Because the targets will still be relevant, even if we are no longer under the IMF’s watch.”

He argued that the exit strips the program of its true purpose.

“If the IMF really wanted us to get to those targets—debt-to-GDP of 55%, and 70% for present value—they should have encouraged the government when it requested an extension.”

Instead, the IMANI Vice President said the IMF prioritized public signaling over practical implementation.

“The signaling is not pretty. They’ve elevated the signaling above the facts.”

He warned that the government will likely take advantage of this loosened scrutiny.

“They will end the program and have more flexibility. But if they don’t stick with the program just because they think they can regain market access, then those IMF targets? They’re gone.”

He cited Kenya as an example.

“Kenya terminated their program early and went to raise $1.5 billion from the Gulf. Nigeria never signed up at all. And now Ghana seems to be following that mindset.”

But, in Simons’ view, this is short-sighted.

“The IMF program doesn’t bring a lot of money. True. But it brings discipline. If you think market access is a better route, just remember—it’s also more expensive.”

Critiquing the move, Bright Simons described the exit as largely symbolic.

“It’s an irrelevant discussion now. The program is ending not because we’ve achieved our goals but because we want to claim victory. The IMF should not reward that.”

As the IMF prepares to possibly sign off with fanfare, Bright Simons insists the hard work is far from over.

“Ending the program doesn’t mean ending the problems. You can clap all you want, but if the fundamentals are weak, markets will remind you soon enough.”

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According to its latest annual fraud report, 365 employees were implicated in various acts of financial misconduct—up from 274 recorded in 2023.

The report, which covers banks and specialised deposit-taking institutions (SDIs), attributes much of the rise to persistent internal lapses and oversight challenges.

Cash theft or suppression remained the predominant form of internal fraud, accounting for three-quarters of the incidents. Of the total implicated staff, 274 were found to be directly involved in the concealment or unlawful appropriation of cash.

Despite the seriousness of these offences, only 43% of those involved were dismissed. The Bank of Ghana notes that lengthy and often complex legal processes discourage many institutions from pursuing comprehensive disciplinary action.

“The Bank of Ghana expressed concern about the consistent and steady increase in staff involvement in fraudulent activities within regulated financial institutions,” the report stated.

It further urged banks and SDIs to “tighten recruitment screening processes and ensure the diligent prosecution of offenders.”

Beyond employee misconduct, the report highlighted a broader trend of increasing fraud within the financial services sector.

A total of 16,733 fraud cases were recorded in 2024, marking a 5% rise from the previous year. While incidents within traditional banks showed a marginal decline, cases surged within the SDI and Payment Service Provider (PSP) segments.

Most concerning was the significant rise in the value at risk from forgery and document manipulation, which ballooned to GH¢53.5 million—almost eight times the GH¢6.9 million reported in 2023.

Losses due to identity theft also saw a staggering increase, rising nearly ninefold.

Despite the volume and scale of these fraudulent activities, only GH¢3 million of the estimated GH¢83 million at risk was successfully recovered, underscoring the sector’s ongoing challenges with enforcement and asset retrieval.

The report concludes with a call for the institutionalisation of a “zero tolerance” culture towards internal fraud and urges ongoing collaboration between financial institutions, regulators, and law enforcement to mitigate the growing threat of financial crime.

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Commencement of the licensing marks a significant step in the government’s efforts to regulate and formalize the industry.

The licensing initiative, which begins today, was announced in a statement issued by the GoldBod’s Media Relations Officer, Prince Kwame Minkah.

Effective immediately, Ghanaian individuals aged 18 and above, as well as wholly-owned Ghanaian companies, are eligible to apply for licenses through GoldBod’s online portal goldbod.gov.gh or in person at its main office in Accra.

The categories of licenses currently open for application include:

• Aggregator License
• Self-financing Aggregator License
• Buyer License (Tier 2)
• Buyer License (Tier 1)

Additional categories, such as Refining, Smelting, Fabrication, Storage, Transportation, and Importation Licenses, will become available starting in July 2025.

GoldBod emphasized that all applicants must read, understand, and accept the Terms and Conditions associated with each license before submission.

Detailed information on licensing procedures, operational guidelines, and regulatory policies is accessible on the organization’s official website.

In a firm reminder of its regulatory mandate, the Board reiterated its earlier directive requiring all foreign entities to exit Ghana’s local gold trading market by April 30, 2025.

This move is backed by the Ghana GoldBod Act, 2025 (ACT 1140), and violators will be subject to legal penalties.

Foreigners, however, may still apply to off-take gold directly from GoldBod under regulated conditions.

The GoldBod also reaffirmed that all gold transactions must align with the official Bank of Ghana (BoG) Reference Rate, available at www.bog.gov.gh, as part of its commitment to promoting transparency and standardization in the industry.

This initiative is part of broader reforms to restructure and streamline the gold trading ecosystem in Ghana, with the overarching goal of optimizing national revenue and ensuring equitable benefits for citizens.

“We look forward to working collaboratively with stakeholders to bring greater order, efficiency, and accountability to Ghana’s gold sector,” said Minkah.

“The success of this initiative depends on the full cooperation of the public, and we remain committed to prioritizing their feedback,” he added.

The company was honored with the “Outstanding Payments Technologies Provider of the Year 2024” award, a recognition of its innovation, reliability, and impact in transforming digital payments in Ghana and beyond.

“We are deeply proud of this achievement,” said Yvonne Effe Faska, Communications and CSR Manager of eTranzact Ghana at the awards ceremony.

“This award is a reflection of the tireless work and commitment of our entire team. It inspires us to keep raising the bar in payment technology,” Faska added.

Adding to the celebration, John Apea, CEO of eTranzact Ghana, was named “Fintech CEO of the Year”, recognising his visionary leadership and unwavering dedication to driving financial inclusion through technology.

“This is not just a personal honor. It’s a tribute to the incredible minds and hearts at eTranzact Ghana. We’re building more than tech, we’re building trust, empowering businesses, and changing lives,” John Apea said.

eTranzact Ghana, a subsidiary of the pan-African electronic payment giant eTranzact Global, has played a critical role in accelerating digital transformation in Ghana’s financial services ecosystem.

With a robust suite of payment solutions, the company provides seamless services to banks, telecoms, government agencies, merchants, and individuals across the country.

eTranzact, renowned for its innovative and reliable platforms, offers a comprehensive suite of digital financial services designed to support secure, real-time transactions.

These include mobile money transfers, card payments, online banking integrations, and agency banking solutions, empowering businesses with scalable and trusted payment tools.

Its diverse range of services includes the XCEL mobile app, USSD services, web payments, remittances, agency banking, mass payments, bill payments, and more. ensuring seamless financial operations for individuals, businesses, and institutions alike.

Under the leadership of John Apea, eTranzact Ghana has seen rapid growth, with several strategic partnerships and product innovations that have strengthened its market position.

The company has also been instrumental in promoting financial inclusion, especially among unbanked and underserved communities, by leveraging technology to bridge gaps in access.

The dual recognition at the Ghana Corporate Finance Gala Dinner 2025 marks a significant milestone in the company’s journey and reinforces its position as a dominant force in Ghana’s fintech landscape.

According to auction results released by the Bank of Ghana, the sale recorded a marginal 2.81% oversubscription.

The government secured GH¢6.67 billion from the T-bills sale but rejected GH¢121.7 million worth of bids.

About GH¢5.7 billion was tendered for the 91-day bill, representing 84.4% of total bids, with GH¢5.67 billion accepted.

For the 182-day bill, GH¢908 million was tendered, and all bids were accepted.

Similarly, a little over GH¢187 million was tendered for the 364-day bill, and all bids were accepted.

Meanwhile, interest rates on the treasury bills continued their downward trend but at a marginal pace.

The yield on the 91-day bill declined by 19 basis points to 15.45%, while the 182-day bill eased to 16.21% from the previous 16.50%.

The interest on the 364-day bill also dropped by 18 basis points to 18.65%.

Meanwhile, the Minister for Trade, Agribusiness and Industry, Elizabeth Ofosu-Adjare, has reiterated the government’s commitment to the pharmaceutical sector, describing it as not only critical to public health but also a strategic pillar of the country’s industrial transformation agenda.

The meeting focused on deepening cooperation between Ghana and the World Bank in critical areas such as agriculture, transportation, and energy.

Dr Ato Forson appealed to the World Bank for increased support in these sectors, which he described as essential to the country’s long-term economic growth and development.

He also proposed the establishment of a World Bank regional hub in Ghana to enhance collaboration and facilitate the timely implementation of development projects.

Mr. Zhang reiterated the World Bank’s commitment to supporting Ghana, particularly in agriculture, which he identified as a key priority for the institution.

He noted that the World Bank has significant experience in agricultural transformation and is well-positioned to assist Ghana in evolving its agricultural sector.

He also disclosed that the Bank is currently working on initiatives aimed at boosting Ghana’s energy sector.

The visit forms part of ongoing engagements between Ghana and the World Bank aimed at strengthening development cooperation and driving inclusive economic growth.

In a writ filed at the Accra High Court, the plaintiff, Balbir Violet Allan, a resident of Adabraka, contends that the drastic depreciation of the cedi during Dr Addison’s tenure has significantly eroded the value of her investments in government treasuries, particularly ESLA Bonds.

According to the suit, when Dr Addison assumed office in February 2017, the cedi-dollar exchange rate stood at GH¢4.26 to $1. However, by February 3, 2025 — when he proceeded on terminal leave — the rate had surged to GH¢15.49 to $1, reflecting a depreciation of approximately 264 percent.

Filed by her lawyer, John E. Baiden of The Liberty Institute Law Firm, the suit argues that the Bank of Ghana, through its Governor, was legally mandated to provide the country with a stable currency.

Instead, the second defendant allegedly allowed the cedi’s value to be dictated solely by market forces such as demand and supply in the foreign exchange market, resulting in instability and volatility.

The plaintiff claims the former Governor failed to develop or implement a credible and lawful plan to stabilise the currency. As Governor, Dr Addison also chaired both the BoG’s Board and its Monetary Policy Committee, which are responsible for formulating and executing monetary policy measures, including currency stabilisation.

“The second defendant has so controlled and conducted the affairs of the first defendant in a manner that extensive harm has befallen the cedi, including that of the plaintiff’s,” the writ states. It argues that justice requires that the legal responsibilities of the Bank of Ghana be made coterminous with those of the Governor, given his dual role as head of the institution and chair of its policy-making bodies.

Ms Balbir said she officially notified Dr Addison on May 30, 2024, of her intention to sue should no steps be taken to restore the cedi’s soundness and value. Following no action on his part, she proceeded with legal action.

Reliefs Sought

The plaintiff contends that unless the court orders compensation, she would have no avenue for recovering the value lost in her investments. She is, therefore, asking the court to lift the corporate veil shielding the Bank of Ghana and hold both the institution and the former Governor jointly and severally liable.

Among other reliefs, she is seeking:

• A declaration that the second defendant was grossly negligent in the management of the Ghana Cedi through the first defendant.

• A declaration that the exchange rate losses she suffered are enforceable against both defendants, jointly and severally.

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Speaking at a meeting with the heads of various commercial banks after the Monetary Policy Committee (MPC) meeting, Dr. Asiama emphasized the importance of clear communication with clients during this adjustment process. This engagement marked the first official meeting between the new management of the central bank and the commercial banks at the Bank Square, the headquarters of the Bank of Ghana.

The meeting was attended by chief executives and representatives of regulated banks in Ghana, along with officials from the Bank of Ghana, including 1st Deputy Governor Dr. Zakari Mumuni.

Background

The Monetary Policy Committee of the Bank of Ghana recently raised the policy rate by 100 basis points to 28%, marking the first review of the key lending rate since September 2024. The decision follows a detailed review of economic developments and is intended to reinforce the disinflation process, which, although underway, remains too gradual to secure lasting stability.

Justification

Dr. Asiama explained that the hike was necessary to address ongoing inflation concerns. “The decline in headline inflation from 23.8% in December to 22.4% in March confirms that recent policy actions are having the intended effect,” he observed. However, he pointed out that inflation expectations remain high, and core inflation is still above the medium-term target.

The Governor stated that the MPC adopted a proactive stance, recognizing that delayed tightening could result in more persistent inflation and higher costs in the long run.

Post-Policy Rate Hike Concerns

While acknowledging the impact of the policy rate hike on borrowing costs for businesses and households, Dr. Asiama reassured that viable businesses would continue to receive support. He emphasized that tailored solutions would be provided to mitigate the effects on vulnerable sectors.

Outlook and Challenges

Despite the challenges, Dr. Asiama noted that the banking sector has shown sustained improvement, with stronger solvency and asset quality measures, as well as strong liquidity and profitability. However, he acknowledged ongoing solvency concerns, particularly with domestically controlled and state-owned banks, where capitalization efforts remain unclear.

Addressing these capital shortfalls remains a priority for the Bank of Ghana, with the Governor revealing that efforts are underway to work closely with affected institutions to ensure sustainable capital levels, restore depositor confidence, and comply with regulatory requirements.

Dr. Asiama also advised commercial banks to draw lessons from past banking crises and prepare for future challenges with a focus on improving crisis management preparedness.

“We expect the 100 basis points hike in the policy rate to sustain interest in Open Market Operations (OMOs) securities, draining demand for T-bills and stabilizing yields. However, the ongoing squeeze on public spending is expected to ease financing needs, preventing an upward spike in T-bill rates, barring any FX shocks,” noted IC Insights.

In the most recent auction, the government rejected GH¢2.37 billion in bids exceeding its yield corridor and accepted only GH¢1.69 billion out of a targeted GH¢4.39 billion. This partial uptake covered just 40% of the upcoming maturities worth GH¢4.22 billion, reflecting tighter supply conditions.

As a result, yields declined by 6.0 basis points on the 91-day bills, 23 basis points on the 182-day bills, and 1.0 basis point on the 364-day bills, settling at 15.65%, 16.50%, and 18.84%, respectively.

The significant bid rejections highlight a misalignment between investor yield expectations and the government’s yield objectives, particularly as the government plans to reopen the bond market.

Databank Research noted, “The gap between the Monetary Policy Rate and money market yields signals a policy rate disconnect—a short-term divergence intended to steer investor interest toward limited alternative assets. However, continued rejections could gradually deplete the Treasury’s liquidity buffers, tightening liquidity in the money market.”

The government plans to raise GH¢6.68 billion this week through the issuance of 91-day, 182-day, and 364-day bills to cover GH¢6.43 billion in maturing bills.

According to him, the commercial banks should maintain transparent communication with clients in carrying out this action.

He disclosed this at a meeting with captains of the commercial banks after the Monetary Policy Committee meeting.

The engagement was part of the Bank of Ghana’s maiden meeting with the heads of the various commercial banks at the Bank Square, the headquarters of the central bank.

This was also the first meeting with the banks by the new management of the central bank headed by Dr Asiama.

In attendance were chief executives or representatives of regulated banks in Ghana and officials of Bank of Ghana, including the 1st Deputy Governor, Dr. Zakari Mumuni.

Background

The Monetary Policy Committee of the Bank of Ghana, after its recent meeting to review the developments in the economy, hiked the policy rate by 100 basis points to 28%.

This is the first time since September 2024, that the Bank of Ghana reviewed its key lending rate to commercial banks.

Justification

The Governor noted that the decision was “aimed at reinforcing the disinflation process, which, while underway, remains too gradual to secure lasting stability.

“The decline in headline inflation from 23.8% in December to 22.4% in March confirms that recent policy actions are having the intended effect,”  the Bank of Ghana Governor observed

Dr. Asiama however noted that “ inflation expectations remain elevated, and core inflation is still above the medium-term target”.

“The Committee therefore adopted a proactive stance—guided by recent experience that delayed tightening can result in more persistent inflation and costlier adjustments” he added.

Post Policy Rate Hike and Concerns

Speaking at the meeting with heads of the various commercial banks, the Governor noted that the Bank of Ghana recognised the effect of the policy rate hike on borrowing costs of businesses and households.”

But was quick to add that “Viable businesses should continue to receive support, and tailored solutions to mitigate the impact on the most vulnerable sectors”.

Outlook and Concerns

The Bank of Ghana Governor noted that despite recent challenges  the banking sector, even without reliefs “ showed sustained improvement on the back of improving solvency and asset quality measures amid strong liquidity and profitability”.

Dr. Asiama was quick to add that despite these solid developments, solvency concerns persist, “especially few domestically controlled and state-owed banks, whiles capitalization efforts remain unclear”.

The Governor was of the view that addressing these capital shortfalls in these banks remains a priority.

“We are working closely with the affected institutions to achieve sustainable capital levels, restore depositor confidence and ensure compliance with regulatory requirements” the Governor disclosed

The Governor also advised the commercial banks to be guided by the past banking resolutions, especially shaping their crises preparedness.

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This follows a recent decision by the Monetary Policy Committee (MPC) of the Bank of Ghana to increase the policy rate by 100 basis points to 28%. In its analysis, titled “A Hawkish Kick-Off to the New Regime,” IC Research noted that the MPC left the door open for a gradual easing of its policy stance as inflation becomes firmly anchored.

“We do not rule out a first cut in 3Q2025. Reassuringly, the MPC left an open door for a gradual easing in the policy stance as inflation becomes firmly anchored,” the report stated.

The research firm expressed confidence that a faster disinflation trend would emerge in the coming months, driven by the tighter monetary policy and ongoing fiscal disinflation measures. It added that this could widen the real policy rate from its current 4.9% to over 8.0% by June 2025, reinforcing the expectation of a policy rate cut at the July 2025 MPC meeting.

In December 2024, IC Research had anticipated a 200 basis points hike in the policy rate at the January 2025 MPC meeting, following inflation overshooting the International Monetary Fund’s target in December 2024. This would typically trigger the Monetary Policy Consultation Clause (MPCC), leading to policy adjustments aimed at restoring inflation to the target.

However, this action was delayed to assess the impact of fiscal disinflation measures included in the 2025 budget.

His appointment took effect on March 20, 2025, following approval by the Bank of Ghana and endorsement by shareholders.

Mr. Sackey succeeds Joe Mensah, who has served as the Chairman of the Board since 2019.

His appointment, alongside other distinguished board members, reflects CalBank’s renewed commitment to driving sustainable growth, profitability, and innovation within Ghana’s banking sector.

Profile of Daniel Nii Kwei-Kumah Sackey

Daniel Sackey is a highly accomplished banking executive with over 30 years of experience in strategic leadership, financial performance, and corporate governance.

He has held key roles across multiple financial institutions, including Ecobank Ghana, Zimbabwe, and Rwanda, driving digital transformation, operational excellence, and regulatory compliance.

With extensive board experience across financial institutions and stock exchanges, he has played a pivotal role in risk management, financial inclusion, and stakeholder engagement. He holds an MBA in International Banking and Finance from the University of Birmingham and a BSc in Accounting from the University of Ghana.

His vast expertise in strategic planning, regulatory compliance, risk management, business development, and financial inclusion makes him an ideal leader to guide CalBank’s strategic direction, reinforcing its position as a dominant player in the banking industry, and supporting its long-term vision of becoming a digital bank, promote financial inclusion and economic development in Ghana.

Speaking on his appointment, Mr. Sackey expressed his gratitude and optimism about the future of CalBank. “It is an honor to lead CalBank’s Board at such a pivotal time. The Bank has demonstrated resilience and strategic focus in achieving remarkable financial recovery. Together with my fellow board members, we are committed to steering the Bank towards sustained profitability and innovation, ensuring value for shareholders and stakeholders alike”.

Strengthening the Board with Seasoned Experts

Alongside Mr. Sackey, new board members have been officially endorsed by shareholders, bringing a wealth of experience in finance, investment, and governance to CalBank:

Johnson Delali Oware – Appointed as Executive Director and Deputy Managing Director, Johnson is an expert in corporate, commercial, and retail banking. His leadership spans across multi-country business growth, structured trade finance, and digital banking expansion.

Kwadwo Brantuo Mpeani – A Chartered Accountant and a former Ernst & Young (EY) Partner, with over 30 years of experience in auditing, taxation, and financial consulting. His strong background in financial management will enhance the Bank’s corporate governance framework.

Yvonne Ofosu-Appiah – A highly respected investment professional with 17 years of experience in venture capital, private equity, and sustainability-focused financial strategies. As Co-founder of Sahara Impact Ventures, she specializes in long-term investments and corporate governance.

Gerrit Muller – A seasoned investment professional with 21 years of experience in financial services, mergers & acquisitions, and private equity across Africa. As Senior Investment Director at Arise B.V., he has played a crucial role in shaping strategic financial investments in Ghana and beyond.

Speaking on the reconstitution of the board, Carl Asem, Managing Director of CalBank, expressed optimism about the bank’s prospects under the new leadership.

He stated that “The new appointments will reinforce the Bank’s strategic position in the Ghanaian market, helping it to create more value for its customers, employees, shareholders, investors, and local communities through sustainable business practices.”

Strong Financial Performance and Future Outlook

The appointment of the new board members comes at a time when CalBank has demonstrated remarkable financial resilience.

The Bank’s audited results for 2024 highlight a remarkable recovery, with Profit Before Tax surging to GHS 414.2 million, signaling a significant turnaround from previous losses.

Net Fees & Commission Income grew by 55.7% to GH¢179.6 million, driven by increased digital banking adoption. Deposits rose by 29% to GH¢9.6 billion, reflecting heightened customer confidence and retail banking expansion. Additionally, loan recoveries reached GH¢792 million, reinforcing the Bank’s commitment to effective risk management and financial stability.

Commitment to Sustainable Growth and Innovation

Under its new leadership, CalBank said it is committed to driving digital transformation, financial inclusion, and robust risk management to ensure sustained profitability.

“The Board is dedicated to executing the Bank’s five-year strategic plan, which focuses on expanding retail and commercial banking, enhancing digital banking platforms, strengthening risk management frameworks, and building strategic partnerships to promote sustainable banking solutions”, it added.

The Future of CalBank

CalBank remarked that it is poised for continued growth and profitability under its new leadership. With a strong emphasis on customer-centric banking, innovation, and operational efficiency, the Bank is set to strengthen its position as a leading financial institution in Ghana.

According to the Bank, its experienced leadership team, combined with a strategic vision, ensures adaptability in an evolving financial landscape. Committed to corporate governance and customer excellence, CalBank remains a trusted partner for businesses and individuals.

Her appointment, made by President John Mahama, was communicated in a letter dated March 26, 2025.

The letter, signed by the Minister of Finance, Dr. Cassiel Ato Forson, was addressed to the Board Chairman of CBG.

Alongside Dr. Kwetey, Ms. Shiela Azuntaba has been nominated as Deputy Managing Director, with both appointments taking effect from March 26, 2025.

A copy of the letter directed the Board to formalize the appointments in accordance with the Companies Act, 2019 (Act 992) and the bank’s constitution.

Profile of Dr. Naomi Wolali Kwetey

Dr. Naomi Wolali Kwetey, wife of NDC General Secretary Fifi Fiavi Kwetey, is a seasoned banking professional with over 20 years of experience in corporate banking, treasury management, credit, and strategic management.

She has built a distinguished career at Ecobank Ghana and the former Trust Bank, which was acquired by Ecobank in 2011.

A financial expert, she is a Fellow of the Chartered Institute of Bankers (FCIB) and a Chartered Dealer (ACI).

Dr. Kwetey is recognized as a turnaround leader with expertise in supervisory controls and sustainable growth within Ghana’s banking sector.

She has held key leadership positions, including:

• Deputy Head of Credit Administration

• Treasurer

• Head of Financial Institutions and Markets

• Business Manager for Financial Institutions and International Organizations

• Head of Customer Experience at Ecobank Ghana

She also served as Head of Customer Experience for Ecobank’s operations in five West African countries.

Academically, Dr. Kwetey holds:

• Doctorate in Business Administration (DBA)

• Master of Arts in Business and International Banking and Finance

• Bachelor of Arts in Economics

Her appointment is expected to bring strong leadership and strategic direction to CBG.

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The meeting focused on developing practical and tailored financial solutions to the challenges facing Ghanaian businesses.

CEOs also discussed innovative support mechanisms and capacity-building initiatives for entrepreneurs to scale up from traditional retail commerce to large-scale industrialization projects.

The discussion also included strategies to leverage financial tools to support small and medium-sized enterprises (SMEs), which are essential to Ghana’s economy, enabling them to compete on a global scale.

Key figures present at the brainstorming session included:

• Sylvester Mensah, CEO of Exim Bank

• Ato Sarpong, MD of the Agricultural Development Bank

• Doliwura Zakaria, CEO of the National Investment Bank (NIB)

• Francis K. Arthur, CEO of Ghana Export Promotions Authority

• Daniel Wilson Addo, MD of Consolidated Bank Ghana

• Farihan Alhassan, MD of Ghana Commercial Bank

• Michael Abbey, CEO of the Venture Capital Trust Fund

• Dr. Randolph Nsor-Ambala, CEO of Development Bank Ghana

• Seth Terkper, Presidential Advisor on the Economy.

This year’s Kwahu Business Forum is themed “The Future of Business: The Role of the Financial Sector.”

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On April 2, 2025, it traded at GH¢15.95 to one US dollar, having gained a slight ground the previous week.

This reflects a year-to-date depreciation of 1.74% against the dollar in the retail market, though it has lost more than 5% in the interbank market.

At the close of last week’s trading, the cedi was quoted at a mid-rate of GH¢15.80 to one dollar.

The improvement came as a result of a easing demand for foreign exchange. As a result, the local currency gained 0.63% week-on-week versus the US dollar, 0.99% against the pound, and 0.88% against the euro.

Ghana’s foreign exchange reserves (excluding encumbered assets) increased by 7.17% in the first two months of 2025, reaching US$6.86 billion as of February 2025, up from US$6.40 billion in December 2024.

This rise in reserves occurred despite a 48% increase in the refined oil import bill.

The current reserve level now stands at three months of import cover, up from 2.9 months at the close of 2024.

Analysts believe the improved reserves have aided the Bank of Ghana’s market support, which has helped keep the cedi stable.

Looking ahead, analysts expect the cedi to remain stable in the near term as the strengthening reserves continue to support supply-side interventions.

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His assertion is based on the recent simultaneous occurrence of a policy rate hike (from 27% to 28%) by BoG and a sharp decline in 91-day Treasury bill rates (from 29% to 15%).

In Ghana, the Treasury bill (T-bill) auction market is jointly managed by the Bank of Ghana (BoG) and the Ministry of Finance (MoF), but their roles differ.

The Ministry of Finance (MoF) in Ghana plays a central role in shaping the government’s short-term borrowing strategy through Treasury bills (T-bills).

The MoF is tasked with determining the total quantity of funds to be raised, which involves setting precise borrowing targets aligned with the nation’s fiscal objectives, such as addressing budget deficits or refinancing maturing debt.

For instance, the MoF may authorize the issuance of GH¢ 2 billion in 91-day T-bills to meet immediate financial obligations.

Alongside this, the Ministry oversees the maturity structure of these securities, selecting from a range of tenors, including 91-day, 182-day, and 364-day bills.

This decision on maturity mix ensures a balanced debt profile, allowing the government to stagger repayment timelines and align them with revenue generation cycles, thereby optimizing fiscal stability and liquidity management.

The Bank of Ghana (BoG) on the other hand, serves as the primary institution responsible for executing Treasury bill (T-bill) auctions on behalf of the Ghanaian government.

In this role, the BoG acts as both the issuer and auctioneer, facilitating the government’s short-term borrowing activities.

The auction process employs a competitive bidding system, where commercial banks, institutional investors, and other financial entities submit bids specifying the yield (interest rate) they are willing to accept for purchasing T-bills.

The BoG evaluates these bids sequentially, prioritizing those with the lowest yields (which correspond to the highest prices) to minimize borrowing costs for the government. This process continues until the total amount specified by the Ministry of Finance (MoF) is fully subscribed.

Once the auction concludes, the BoG establishes the cut-off yield, defined as the highest yield accepted during the bidding process.

This cut-off yield subsequently becomes the benchmark market rate for T-bills of that specific tenor, influencing broader interest rates in the financial system and reflecting investor confidence in Ghana’s fiscal stability.

By managing this structured auction framework, the BoG ensures transparency, efficiency, and alignment with the government’s liquidity and debt management objectives.

Summary of macroeconomic and financial data report by BOG

Figure 1 displays 91 Day Treasury Bills rate from January 6, 2025 to March 31, 2025. The 91 Day Treasury Bills rate dropped from 28.19% to 15.71% spanning from the period specified above.

Figure 2, shows the combination of 91 Day Treasury Bills rate and a Monetary policy rate from January 2025 to March 2025. As shown in the figure 2 of the Summary of Macroeconomic and Financial Data report published in March 2025 by BoG, revealed a 91-Day T-Bill Rates fall from 29% to 15%. The same report published by BoG, indicated an increase in the policy rate from 27% to 28%.
 

The graph further showed that from January 2025 to March 2025, the 91-day T-bill rate reflects which a  short-term government borrowing costs and investor confidence took a nose dive from 28.52% to 15.71% yielding a change of 1,281 basis points.

The monetary policy rate which is the benchmark interest rate set by the Bank of Ghana (BoG) to control inflation and stabilize the economy and guides the T-Bill rates increased from 27% to 28% resulting to change of 100 basis points.

In as much as the inconsistencies and the implications are relevant, IERPP feels it is equally important to discuss the implications of the increase in policy rates and the sharp reduction in T-Bills rates to businesses.

To start with, an increase in the monetary policy rate, signaling tighter monetary policy, significantly impacts businesses by raising borrowing costs as banks hike lending rates, forcing firms to postpone or reduce expansion plans.

Higher interest rates also dampen consumer spending, particularly in sectors like retail, real estate, and automotive, as households cut back on loans and mortgages. Businesses with variable-rate debt face inflated interest payments, squeezing profits and limiting operational cash flow.

Over time, expensive credit and weak demand stifle investments, innovation, and productivity, risking an economic slowdown as GDP growth weakens.

These effects compel businesses to prioritize financial resilience and adapt strategies to navigate a constrained economic environment.

In terms of the Treasury Bill, a sharp decline in the 91-day Treasury bill (T-bill) rate, such as falling from 29% to 15%, signals shifts in government borrowing costs and investor sentiment, with mixed implications for businesses.

While firms holding T-bills face lower risk-free returns, reducing interest income and liquidity, the drop may also indicate improved fiscal stability through lower inflation expectations and stronger confidence in economic management.

Over time, sustained low T-bill rates could lead to reduced market interest rates, easing credit access for businesses.

Simultaneously, diminished T-bill yields may push companies to reallocate funds into higher-yield investments like stocks, bonds, or internal projects. This interplay highlights how monetary conditions and market dynamics shape corporate financial strategies.

Identifying the inconsistencies

The simultaneous occurrence of a policy rate hike (from 27% to 28%) and a sharp decline in 91-day Treasury bill rates (from 29% to 15%) presents a paradoxical divergence in Ghana’s monetary policy stance.

On one hand, the Bank of Ghana (BoG) raised the policy rate to tighten liquidity, curb inflation, and discourage borrowing by making credit more expensive—a classic contractionary measure. On the other hand, the dramatic drop in T-bill rates signals excess liquidity in the financial system, as investors aggressively bid down yields despite the central bank’s tightening efforts.

This contradiction arises because, under normal circumstances, a policy rate hike should reduce money supply, driving up short-term interest rates like T-bill yields.

However, the plummeting T-bill rates suggest robust demand for government debt, possibly due to risk-averse investors flocking to safe-haven assets amid economic uncertainty, or banks channeling surplus liquidity into T-bills rather than extending riskier loans to businesses.

This inconsistency highlights a potential breakdown in the monetary policy transmission mechanism, where the BoG’s tightening measures fail to align with market behavior, raising questions about underlying fiscal pressures, investor confidence, or administrative interventions to suppress borrowing costs.

Further, a contradiction emerges when a central bank implements tight monetary policy (e.g., raising the policy rate) to combat inflation, yet market interest rates, such as Treasury bill yields, fall, contrary to expectations.

Normally, higher policy rates should reduce liquidity and lift market rates. This anomaly points to two key issues:

1. Weak policy transmission, where central bank rate hikes fail to influence broader market rates due to structural inefficiencies, poor liquidity management, or eroded economic confidence.
2. Market distortions, such as regulatory mandates forcing banks to buy government debt (e.g., T-bills) regardless of yields, artificially depressing rates despite monetary tightening.

Business implications of these inconsistencies

The paradoxical divergence between rising policy rates and falling T-bill yields creates a challenging environment for businesses, marked by an unpredictable cost of capital.

While firms face higher borrowing costs due to elevated policy rates, the simultaneous decline in T-bill yields introduces ambiguity in financial forecasting, complicating budget allocations and investment strategies.

This inconsistency also heightens the risk of a credit crunch, as banks, enticed by the safety of government securities, may prioritize purchasing low-yield T-bills over extending riskier loans to businesses, stifling credit access for SMEs and large enterprises alike.

The conflicting signals further fuel investment uncertainty, deterring long-term capital expenditures as firms await clarity on monetary policy direction.

However, if persistently low T-bill rates prompt the Bank of Ghana to eventually cut the policy rate, businesses could see relief through lower borrowing costs and improved credit availability.

Until then, sectors reliant on external financing, such as manufacturing and real estate, must navigate heightened volatility while balancing liquidity preservation with growth ambitions.

This misalignment risks capital misallocation and undermines the credibility of monetary policy, highlighting systemic challenges in synchronizing policy goals with market behavior.

The recent hike in the policy rate to 28% poses significant challenges for businesses by escalating borrowing costs, thereby stifling access to credit for expansion and operational needs.

Conversely, the sharp decline in the 91-day Treasury bill rate to 15%, while beneficial for the government by reducing its short-term debt burden, signals underlying market distortions and a misalignment in monetary policy transmission.

Ordinarily, a tightening monetary stance should elevate T-bill rates by constraining liquidity, yet the paradoxical drop highlights either a liquidity surplus in the financial system or a weak policy transmission mechanism, where central bank measures fail to permeate market behavior effectively.

This inconsistency underscores systemic vulnerabilities, including potential over-reliance on risk-averse investments like government securities or regulatory pressures. Skewing market dynamics, ultimately complicating economic planning for both policymakers and private enterprises.

IERPP’s Recommendations for Businesses:

Businesses are advised to adopt a prudent approach by delaying significant loan commitments until interest rates stabilize, thereby avoiding elevated borrowing costs amid ongoing monetary volatility.

To bridge funding gaps, firms should explore alternative financing mechanisms such as equity injections, trade credit, or public-private partnerships.

Concurrently, close monitoring of the Bank of Ghana’s (BoG) policy signals is critical, as sustained declines in Treasury bill yields could prompt future rate cuts, offering relief to credit-dependent sectors.

These strategies aim to enhance financial resilience while navigating uncertain macroeconomic conditions.

The Bank of Ghana(BoG), in today’s Monetary Policy Committee (MPC) release, has raised the policy rate (MPR) by 100 basis points, from 27% to 28%.

Typically, the MPR guides short-term interest rates like the T-bill rate. So, why the glaring inconsistency between the two? I warned repeatedly that the Finance Ministry was on the wrong path, attempting to control both price and quantity in the T-bill auction market – forcing rates down from 29% to as low as 15% for 91-day bills.

I also questioned why the Central Bank wasn’t more aggressive in managing excess liquidity through open market operations (OMO) or Discount Policy Operations (DIPO) to ensure price stability.

Well, at least the Governor of the Central Bank listens – unlike the Finance Minister. The latest MPC release signals plans to ‘introduce a 273-day instrument to strengthen the existing sterilization toolkit’, which I believe will aid the disinflation process.

The Finance Minister must take a cue: macroeconomic management is critical to national financial stability.

The ongoing policy incoherence between the Finance Ministry and the Central Bank exposes a worrying lack of coordination. If fiscal and monetary authorities don’t align, economic management suffers.

The recent undersubscription of T-bills in the last two auctions (21st & 28th March) speaks volumes. It’s time to learn some lessons.

According to him, this is the remaining amount needed after the government disbursed GH₵5 billion to compensate some affected customers.

Dr. Avedzi made this disclosure on PM Express Business Edition with host George Wiafe on March 27, 2025.

He explained that delays in settling claims were partly due to legal challenges from some fund management firms, including Blackshield Capital, which contested their liquidation process in court.

Beneficiaries

Dr. Avedzi further revealed that out of 108,000 investors identified during the audit, 80,000 have so far received full payments. He assured that the government is working to clear the remaining claims.

Background

In 2019, the SEC revoked the licenses of 53 fund management firms as part of efforts to safeguard the integrity of the securities market and protect investors.

Some of the affected firms included All Time Capital Limited, Apex Capital Partners, Axe Capital Limited (formerly United Asset Management), Intermarket Asset Management Limited (formerly CDH Asset Management), and Blackshield Capital Management (formerly Gold Coast Fund Management).

According to the SEC, these firms collectively managed at least 56,000 investors and held a combined asset base of GH₵8 billion.

Bailout for Investors

In 2024, the government announced a GH₵1.5 billion bailout for investors of the collapsed fund management firms. Under this arrangement, affected investors received either GH₵50,000 or 15% of their outstanding claims.

This partial bailout covered clients of all affected firms, including customers of Blackshield Fund Management. It resulted in 89% of individual investors and 82% of pensioners being fully compensated.

Additionally, GH₵700 million was disbursed through GCB Capital to facilitate payments to investors.

Status of Bailout Payment

Dr. Avedzi noted that while the 2025 Budget did not include provisions for the remaining payments, he remains hopeful that funds could be secured during the Mid-Year Budget Review.

“The government is committed to settling these payments due to their impact on market confidence,” he assured.

He also warned that SEC would take decisive action against any fund management company that fails to comply with market regulations.

“We don’t want a repeat of the circumstances that led to the liquidation of some fund management firms,” he emphasized.

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According to the Bank of Ghana, the local currency traded at GH¢15.53 to the American greenback on the interbank market as of March 2025.

In January and February 2025, the cedi weakened by 5.3% and 3.9%, respectively, against the US dollar.

Similarly, the cedi lost 9.2% of its value against the euro in the first quarter, trading at GH¢16.75 on the interbank market. Against the British pound, it depreciated by 8.2%, selling at GH¢20.03.

However, last week, the local unit gained 0.31% week-on-week against the US dollar in the retail market, closing at a mid-rate of GH¢15.90. This reduced the year-to-date loss to 2.36%.

Next week, a team from the International Monetary Fund (IMF) is expected to visit Ghana to begin the fourth review of the US$3.0 billion Economic Credit Facility programme.

The review will assess the country’s performance under the IMF programme and the 2025 Budget.

Analysts believe a successful review could pave the way for another tranche disbursement, which would support the Bank of Ghana’s market intervention efforts and help stabilise the cedi.

The February 2029 and February 2031 maturities accounted for 50% of traded volumes.

Overall, the 2027–2030 maturities led with 56% of trades at an average Yield-To-Maturity of approximately 24%.

The 2031–2038 segment also contributed 44% at an average Yield-To-Maturity of 23%.

Analysts expect market activity to pick up in the coming sessions.

This is because institutional investors are rebalancing portfolios ahead of the first quarter’s close.

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According to auction results from the Bank of Ghana, the government raised GH¢4.99 billion from the sale of short-term instruments but accepted only GH¢3.31 billion.

The 91-day bill accounted for the majority of the bids, with GH¢3.63 billion tendered, representing 72.7% of total bids. However, the government accepted GH¢2.33 billion.

For the 182-day bill, GH¢741.38 million was tendered, with an uptake of GH¢574.49 million. The 364-day bill saw bids worth GH¢622.7 million, but only GH¢406.07 million were accepted.

Meanwhile, interest rates remained relatively stable across the yield curve.

The yield on the 91-day T-bill declined by 12 basis points to 15.85%, while the 182-day bill remained unchanged at 16.92%. The rate on the 364-day bill fell slightly to 18.84% from the previous week’s 18.96%.

Speaking on PM Express Business Edition on Joy News, the Managing Director of Stanbic Bank Ghana did not mince words about the reputational damage caused by financial misconduct within banks.

“What we sell as banks is trust,” he emphasized.

“And it’s embarrassing, and it’s a big shame when we breach the trust of our customers, our employers, and our shareholders by effectively putting our hand in the cookie jar.”

He pointed out that while the banking sector is built on financial integrity, the environment itself presents many temptations.

“You know, there’s a biblical saying that the love of money is the root of all evil, and we’re right in the midst of money,” he said.

“So you can imagine that it brings out the very worst in people. And unfortunately, we’re finding that some of our colleagues are unable to control themselves when they see these vast sums.”

To address this challenge, Asomaning called for a more aggressive approach to ethics training, beyond the standard programs already in place.

“It’s important for us as an industry to double down on training and sensitization on these topics of ethics and good moral character,” he noted.

He revealed that the Chartered Institute of Bankers, in collaboration with the National Banking College, is now offering an ethics module free of charge to banks to ensure that every staff member is equipped with the right moral compass.

“It should be made mandatory,” Asomaning insisted.

“I mean, all banks have ethics programs that they’ve rolled out to their staff. But ethics is an area where you cannot have too much of, because of the temptations you face daily, the pressures from customers, from other parties, from family members—it’s excessive. So being reminded of the need to constantly maintain that high moral line is extremely important.”

His remarks come amid rising concerns about banking fraud in Ghana, with several cases of insider-related financial misconduct surfacing in recent years.

Industry stakeholders have been calling for stricter compliance measures, and Asomaning believes ethics training should be at the core of that effort.

“This is not just about compliance. This is about protecting the reputation of the industry, protecting jobs, and most importantly, maintaining the trust of the public,” he concluded.

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Lending to enterprises has been gradual, with banks seeking prudent returns on their funds amid a significant drop in T-bill rates. Since the beginning of the year, the rate has fallen by more than 20%, reaching approximately 15% in March.

The President of the Ghana Association of Banks and Chief Executive of Stanbic Bank Ghana, Kwamina Asomaning, disclosed this on PM Express Business Edition on March 20, 2025, with host George Wiafe. He noted that banks are adjusting their strategies to align with current market developments.

Treasury Bill Rate Reduction and Market Impact

Mr. Asomaning explained that the sharp decline in inflation has placed sudden pressure on the cedi.

“This is because the return investors are getting now is not commensurate with the expected inflation rate,” he said.

He warned that this development could influence the demand for foreign exchange, potentially increasing pressure on the cedi in the coming weeks.

Treasury Bill Rate Reduction Debate

Mr. Asomaning advised that the pace of T-bill rate reductions must be managed carefully to prevent market shocks and ensure alignment with macroeconomic indicators such as inflation and the Monetary Policy Rate.

He also urged investors to focus on projected inflation trends rather than historical data when making decisions.

“The Finance Minister, Dr. Ato Forson, in the 2025 Budget, projected that inflation will hit 11% by the end of the year. That should indicate the government’s commitment to reducing inflation further,” he stated.

High Interest Rate Dynamics and Non-Performing Loans

Addressing concerns over high interest rates, Mr. Asomaning dismissed claims that commercial banks benefit from such conditions.

“We are not happy when interest rates are high because they affect businesses’ ability to repay loans on time. That is why some banks reduce lending,” he noted.

On non-performing loans (NPLs), he described the situation as concerning.

“We have taken measures to address the issue, with support from the Bank of Ghana,” he assured.

Data from the Ghana Association of Banks as of December 2024 put the NPL ratio at approximately 21.8%. This has affected banks’ lending capacity, as many institutions focus on strengthening their financial positions.

“We should not overlook the impact of the external environment on businesses’ ability to repay loans,” Mr. Asomaning added.

This framework is designed to control inflation through an inflation forecast, which incorporates various macroeconomic variables beyond just the money supply.

The primary monetary policy tool of the Bank of Ghana (BoG) is the Monetary Policy Rate (MPR), while the operating target is the overnight interbank rate.

The MPR serves as a guide for all market interest rates and is adjusted bi-monthly by the MPC to align with the inflation target jointly set by the BoG and the Ministry of Finance. The medium-term inflation target (2023-2025) is 8% (±2%), with an end-year target for 2025 set at 11.9% (±2%).

When inflation deviates from the target, the MPC assesses a range of economic indicators and adjusts the MPR accordingly. The BoG implements policy decisions through open market operations (OMO), the issuance and redemption of securities, and interventions in the foreign exchange market.

The Role of the Bank of Ghana

The BoG plays a crucial role in managing the money market and ensuring financial stability. By adjusting the MPR, the BoG influences liquidity conditions, lending rates, and overall economic activity. A decline in Treasury bill (T-bill) rates can influence the BoG to lower its policy rate to maintain a stable interest rate environment.

Treasury Bills and the Money Market

T-bills are short-term debt instruments issued by the government to finance its operations. Their yields serve as a benchmark for the overall interest rate environment. A decline in T-bill rates can signal increased liquidity in the money market and a shift in monetary policy. Lower T-bill rates reduce government borrowing costs, improving fiscal space and potentially encouraging private-sector investment.

Impact of Declining T-bill Rates

A decline in T-bill rates generally indicates an easing of monetary policy, leading to:

• Increased Liquidity: Lower rates encourage banks to lend more, boosting credit expansion.
• Lower Borrowing Costs: Reduced rates make it cheaper for businesses and households to access credit, stimulating investment and consumption.
• Potential Inflationary Pressures: Increased liquidity and demand could drive inflation if not managed carefully.

Macroeconomic and Fiscal Implications

Lower interest rates can stimulate economic growth by encouraging investment and consumption. However, sustained fiscal discipline is crucial to ensure that lower borrowing costs translate into economic expansion rather than excessive government spending. To maximize the benefits of declining T-bill rates, Ghana must prioritize fiscal consolidation and use interest savings to reduce debt rather than fuel new expenditures.

Foreign Exchange Stability

Foreign exchange stability is a key factor in assessing the sustainability of lower domestic yields. Historically, sharp declines in interest rates have raised concerns about capital flight and exchange rate pressures. However, Ghana’s foreign exchange market has remained relatively stable, with the cedi experiencing only mild depreciation (approximately 5.3%) since the beginning of the year.

Crowding-in Effect and Private Sector Growth

A lower interest rate environment can create a crowding-in effect, where reduced government borrowing costs allow private sector entities to access cheaper credit. This can spur investment in new projects and businesses, fostering economic growth. Strengthening financial sector resilience and improving private sector credit access will be crucial in optimizing the economic gains from lower borrowing costs.

Conclusion

Given the current inflation outlook and potential currency depreciation, the BoG may opt to maintain the policy rate at 27%. The impact of external factors, such as MTN’s GH¢3.8 billion (US$250 million) dividend payment and substantial profit declarations by 14 foreign banks, could also influence policy decisions.

Additionally, Bloomberg reports that the Ghana Cocoa Board may need to transfer nearly US$2 billion for debt obligations, potentially exerting pressure on the cedi. To mitigate inflationary risks, the BoG might maintain the policy rate at 27% or make a marginal reduction to 26.5%.

Improved macroeconomic conditions—characterized by declining inflation, robust real growth, and fiscal stability—could justify an eventual easing of monetary policy. This would lower lending rates for businesses and households, fostering economic expansion. However, persistent inflationary pressures, driven by rising food and fuel prices, may necessitate a tightening of monetary policy to stabilize the economy.

Ultimately, the BoG’s policy decisions must balance inflation control, liquidity management, and economic growth to ensure sustainable financial stability.

Speaking on Joy News’ PM Express Business Edition on Thursday, March 20, Asomaning acknowledged the challenges the sector has faced but emphasized the strides made towards stability.

“I have been in the banking sector for some years, and the only constant is change. Each period has come with its fair share of challenges,” he noted.

“I wouldn’t say one period has been more turbulent than others by a significant degree, but we’ve gone through a few shocks.”

Reflecting on recent economic upheavals, the Managing Director of Stanbic Bank Ghana pointed to the COVID-19 pandemic and Ghana’s sovereign debt default as key disruptions that rattled the financial landscape.

However, he stressed that despite the setbacks, the situation has improved compared to the past two years.

“I think it’s fair to say that we are on a path to recovery. We’re not completely out of the woods, but if you look back to where we were in 2022 and 2023, there has been significant improvement on the broad macros and in the sector in particular,” he explained.

The banking sector faced immense pressure following Ghana’s debt restructuring efforts, which significantly impacted financial institutions holding government bonds.

The sector also grappled with liquidity challenges and weakened investor confidence. However, Asomaning believes the worst is behind the industry, with positive trends emerging.

Industry players have been working closely with regulators to restore stability, and Asomaning commended efforts made by the Bank of Ghana in fostering resilience.

“The regulator has been very instrumental in ensuring that the right policies and measures are put in place to restore confidence in the sector,” he said.

His remarks come at a time when banks are gradually regaining momentum, with improved macroeconomic indicators signaling cautious optimism.

Inflation rates, currency stability, and economic growth projections have shown some progress, factors that Asomaning believes are critical in solidifying the recovery process.

While acknowledging that the road ahead remains uncertain, Asomaning underscored the need for continuous adaptation and collaboration to sustain the gains made.

“As banks, we must remain agile and innovative. The challenges we have faced only reinforce the importance of resilience and adaptability,” he stated.

According to JOYBUSINESS, lawyers representing the aggrieved investors have formally notified the banks of their intention to sue for losses incurred due to the restructuring and the resulting haircut on their investments. The investors claim they trusted the commercial banks when making their investments.

Some investors who did not participate in the DDEP are also among those taking legal steps due to the financial losses they experienced after their investments lost value.

Background:

In September 2024, the government launched the Debt Exchange Programme for Eurobond holders, inviting bondholders to swap old bonds for new ones. The offer, which ran until September 30, 2024, included options such as the PAR Option with a lower interest rate of 1.5% and the DISCO Option with a 37% nominal haircut but higher interest rates (5%-6%). The government claimed to save about $5 billion in debt service from the restructuring.

Ghana Association of Banks’ Response:

John Awuah, CEO of the Ghana Association of Banks, called the legal threat “surprising.” He clarified that the banks acted solely as agents for the government in distributing the Eurobond issuance and emphasized that the bonds came with a prospectus that included collective action clauses. He pointed out that the commercial banks could not be held liable for any failures by the government.

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The ceremony took place on Thursday, March 13, at the Central Bank’s headquarters in Accra.

“You come from diverse backgrounds in both the public and private sectors, which have equipped you with the right attitudes and perspectives to lead the Bank of Ghana effectively during this critical period marked by significant economic challenges,” she remarked.

She further emphasized that the Bank needs innovative and dynamic leadership to continue delivering its public services and to restore and strengthen stakeholder trust in the institution.

“I am convinced that you will bring your individual and collective expertise to the governance of the Bank, to ensure that the President’s economic agenda of resetting the country is achieved.

“As good corporate governance requires of all new boards, I urge you to examine the existing policies of the Bank to ensure that such policies are aligned with leading contemporary policies and, more importantly, that they align with the Government’s social contract with the people of Ghana,” she stressed.

The Vice President continued: “Governor Chair, it is important to mention that our Government has ensured gender parity in the composition of this Board with the appointment of five women.

“This composition, with over 40% female representation, makes this Board appropriately diverse, inclusive, and consistent with leading global practice and standards on board diversity and inclusion.”

“Once again, I congratulate you and wish you the very best in your new role. May your tenure be an impactful and successful one as you seek to guide this institution to achieve its mandate and attain the macroeconomic agenda of the Government,” she added.

President John Dramani Mahama, in consultation with the Council of State, appointed the 12 individuals as members of the governing board of the Bank of Ghana on Wednesday, February 26, 2025.

Their appointment is in accordance with Article 70(1)(d)(iii) of the Constitution and Section 8 of the Bank of Ghana Act, 2002 (Act 612), as amended by the Bank of Ghana (Amendment) Act, 2016 (Act 918).

The newly constituted board is expected to provide strategic guidance and policy direction for the Bank of Ghana, ensuring sound monetary management and financial stability in the country.

Full List of the 12-Member Bank of Ghana Governing Board

1. Dr. Johnson Pandit Kwesi Asiama – Governor (Chairman)
2. Dr. Zakari Mumuni – 1st Deputy Governor
3. Thomas Nyarko Ampem – Representative from the Ministry of Finance
4. Mr. Augustine Fritz Gockel – Economist
5. Nana Akua Ayivora – Accountant/Audit/Risk/Compliance
6. Emma Akua Bulley – Lawyer
7. Evelyn Naa Checher Kwatia – Finance Markets/Treasury
8. Dr. Stephen Senyo Sapati – Finance/Audit
9. Beatrice Feehi Annangfio – Lawyer
10. Kizzita Mensah – Lawyer
11. Joseph W. Asamoah – FinTech
12. Isaac Adongo – Economist

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During a discussion on JoyNews’ Roundtable on March 12, centered around the 2025 budget, Kwakye Ofosu explained that the policy is part of a larger economic transformation agenda, which includes various agricultural initiatives.

“It is part of a programme that we call the agriculture or economic transformation agenda, which involves a lot of activities aimed at boosting agriculture,” he said.

Under this program, the government has introduced several initiatives such as the Feed Ghana programme, the Ghana Grains Development Project, and the Vegetable Development Project, alongside the ‘Nkukor Nkitinkiti’ Poultry Farm to Table project.

Kwakye Ofosu noted the severe state of the poultry industry, stressing that immediate intervention is necessary. “Incidentally, as we speak, the poultry industry has collapsed,” he remarked.

He clarified that the policy is more than just the distribution of chicks to farmers. “It is not just about having chicks given to you to go and raise to build a poultry farm on your own. We are going to help farmers who grow vegetables, those who are into grains, soya beans, rice, yams, cassava, and more. It is a broad, structured programme designed to support multiple agricultural activities,” he explained.

The government has allocated ¢1.5 billion Ghana cedis to fund the initiative. While some have raised concerns about the adequacy of the amount, Kwakye Ofosu expressed confidence that the policy will attract private investment.

“Eventually, those who have benefited initially will grow their capital to reinvest, and others who may have some capital but are unsure where to invest it will also come in because poultry is a lucrative venture,” he noted.

Kwakye Ofosu emphasized that agriculture remains a key pillar in addressing unemployment, a major national challenge. “We believe agriculture is one of the ways we can create jobs, especially in a situation where unemployment remains one of the biggest national problems,” he stated.

The ‘Nkukor Nkitinkiti’ policy is part of the government’s efforts to revive the poultry industry, strengthen the agricultural value chain, and create sustainable employment opportunities, while striving for food security and economic self-sufficiency.

“The NDC went around promising to establish the women’s bank and touted Mahama as the hope, but you have allocated only GH₵51 million. As of now, you need not less than GH₵400 million to start a bank,” he said.

He further questioned the viability of disbursing funds to women, suggesting that even creating 16 branches would require more funds before accounting for operational expenses.

Mr. Nkrumah concluded by stating that President Mahama should have been more specific about the type of bank to be established during their campaigns.

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The ruling, delivered on Monday, March 10, marks a significant victory for the financial institution, which was among several companies affected by BoG’s financial sector cleanup.

According to the court, the Bank of Ghana failed to exhaust the necessary legal procedures before revoking Ideal Finance’s licence, making the decision unjustified. As a result, the company’s legal standing has been restored, paving the way for it to resume operations.

Ideal Finance was among 23 financial institutions whose licences were revoked on August 16, 2019, as part of BoG’s broader efforts to sanitise the banking and financial sector.

Other affected institutions included GN Savings and Loans, First Allied Savings and Loans, Midland Savings and Loans, and Unicredit Savings and Loans.

The central bank justified the move by citing insolvency and poor governance, arguing that these institutions had remained financially weak despite being given time to recapitalise.

While the financial sector cleanup was aimed at restoring stability and confidence in the industry, it led to the collapse of several institutions, causing financial distress for depositors and stakeholders. The exercise has also faced legal challenges from affected companies seeking to reverse the revocations.

The court’s ruling in favour of Ideal Finance sets a precedent for similar cases and raises concerns about the transparency and fairness of BoG’s regulatory decisions.

It remains to be seen whether the central bank will appeal the decision or review its approach to future financial sector interventions.

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Finance Minister Dr. Cassiel Ato Forson disclosed this while presenting the 2025 Budget Statement in Parliament on Tuesday.

The National Democratic Congress (NDC) first announced plans to establish the bank ahead of the 2024 election to provide capital for women-owned businesses and support their growth.

Vice President Prof. Naana Jane Opoku-Agyemang, then the party’s running mate, highlighted the importance of ensuring women entrepreneurs have access to capital, stating that the bank would provide credit to small-scale businesses.

She acknowledged the difficulties many female entrepreneurs face in securing funding due to high interest rates, stringent collateral requirements, and the lack of tailored financial products.

The new bank aims to address these challenges by providing affordable loans with flexible repayment terms, enabling women to grow and sustain their businesses.

During his first State of the Nation Address (SONA) on February 27, President John Dramani Mahama announced that consultative processes were underway for the bank’s establishment.

The Ministry of Gender, Children, and Social Protection, in collaboration with the Bank of Ghana (BoG), will oversee the process to ensure the bank becomes fully operational by mid-2025.

To support the initiative, the government is working with international development agencies and women-focused non-governmental organizations to mobilize resources.

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The Bank of Ghana (BoG) is set to introduce new measures to stabilize the cedi and reduce exchange rate volatility.

Finance Minister Dr. Cassiel Ato Forson announced this while presenting the 2025 Budget Statement and Economic Policy to Parliament on March 11.

He acknowledged that cedi stabilization was crucial in reducing the cost of living and helping businesses plan effectively.

“Our engagements with traders and businesses indicate that exchange rate instability is one of the biggest challenges they face. This budget addresses these concerns with a concrete plan,” he said.

As part of the stabilization plan, the central bank will strengthen regulations on forex trading to curb speculation that artificially increases demand.

BoG will also intensify monitoring of forex bureaus and banks to ensure compliance with exchange rate policies.

Additionally, the central bank will boost foreign reserves through an improved gold-for-oil policy and measures to increase exports.

Dr. Forson noted that the government is working with the private sector to expand local production, reducing Ghana’s reliance on imports, which has been a major factor in the cedi’s depreciation.

He assured businesses that stabilization remains a priority for the Mahama administration, as it will help lower inflation and create a more predictable economic environment.

The audit will be carried out by the Architectural and Engineering Services Limited (AESL) following board approval.

Dr. Asiama made the announcement while briefing Parliament on the project on Wednesday, March 5. He explained that the cost of the building increased by $88 million after changes to the project’s design.

“We believe this will bring clarity to the matter, and we believe this will bring closure to the issue of our new Bank of Ghana building,” he assured.

As of February 2025, Dr. Asiama disclosed that a total of $230 million had been paid to the contractor, with an outstanding balance of $31.8 million yet to be settled. Additionally, $48.3 million had been paid in taxes and levies related to the construction.

The Governor highlighted that the project was 98% complete, detailing several significant expenditures, including $8.6 million for an Integrated Communication and Computing (ICC) system and network infrastructure, $15.8 million for integrated electronic security systems, and $11.1 million for furniture and furnishings.

In November 2024, former President Nana Akufo-Addo officially inaugurated the new headquarters of the Bank of Ghana following concerns about the structural integrity of the old office building.

The project was met with resistance from the National Democratic Congress (NDC) while they were in opposition.

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Addressing journalists, Government Statistician Prof. Samuel Kobina Annim noted that the consistent decline in food inflation is influencing the overall inflation rate.

“In the last four months, you’ve seen a consistent decline in food inflation on a month-on-month basis, declining by 2.0 percentage points between November 2024 and February 2025,” Annim said.

He added that despite the decline, the annual inflation rate in February remains the third-highest in the last 10 months.

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