Addressing the Parliamentary Committee on Economy and Development at Parliament House on Monday, March 9, Dr. Asiama said the country entered 2025 in a fragile state, but decisive policy measures have begun to deliver results.

“When I assumed office as Governor in February 2025, the Ghanaian economy was emerging from one of the most challenging periods in recent history,” he said.

According to Dr. Asiama, the country had been grappling with high inflation, a weakening currency, and the impact of the Domestic Debt Exchange Programme on the financial sector.

He explained that inflation stood at 23.8 percent at the end of 2024, far above the central bank’s target band of 8 ± 2 percent, while the Ghana cedi had depreciated by about 24.8 percent during the same period.

“Persistent inflation had eroded household purchasing power, complicated business planning, and weakened confidence in the macroeconomic environment,” he said.

To restore stability, the central bank adopted a tight monetary policy stance, intensified open market operations to absorb excess liquidity, and introduced measures to strengthen Ghana’s foreign exchange reserves.

Among the steps taken was the expansion of the Domestic Gold Purchase Programme, which increased Ghana’s gold reserves from about 8.7 tonnes in 2021 to more than 40 tonnes by October 2025.

However, Dr. Asiama noted that the Bank later rebalanced part of the gold holdings to reduce concentration risk.

“Ghana’s gold reserves remain part of our national reserves; what changed as part of this measure was the composition of those reserves,” he clarified.

“In light of these considerations, the Bank undertook a measured portfolio rebalancing, converting a portion of its gold holdings into foreign exchange assets to restore a more balanced reserve composition.”

He stressed that the move did not amount to a loss of national assets but rather a diversification strategy to ensure the reserves remain liquid and resilient.

The Governor told the Committee that the policy measures have produced significant macroeconomic improvements.

Inflation declined from 23.8 percent in December 2024 to 5.4 percent by December 2025, and further to 3.3 percent in February 2026.

“The results of these efforts are now evident in the macroeconomic data,” Dr. Asiama said.

He added that Ghana’s external buffers have strengthened, with gross international reserves rising to about $13.8 billion by the end of 2025, providing roughly 5.7 months of import cover.

Interest rates have also begun to ease, with the Monetary Policy Rate reduced by 900 basis points in 2025 to 18 percent.

Dr. Asiama further noted that Ghana’s banking sector has shown signs of recovery after the impact of the debt exchange programme.

Capital adequacy in the banking sector improved to 17.5 percent, well above the 13 percent regulatory requirement, while the non-performing loan ratio declined from 21.8 percent to 18.9 percent.

Total banking sector assets increased from GH₵368 billion to GH₵447 billion, with deposits rising to GH₵325 billion.

“Taken together, these indicators show that the banking system today is liquid, solvent, and profitable, and increasingly positioned to support Ghana’s economic recovery,” he said.

Dr. Asiama acknowledged that the stabilisation measures have had financial implications for the central bank, including higher costs associated with liquidity management and the restructuring of government securities.

However, he assured lawmakers that these outcomes do not affect the central bank’s ability to carry out its mandate.

“Lower inflation, exchange rate stability, and improved macroeconomic confidence have delivered significant benefits to households, businesses, and government,” he stated.

Looking ahead, the Bank of Ghana Governor expressed optimism about the country’s economic outlook but cautioned that global uncertainties remain.

“Lower inflation, stronger external buffers, and improving financial sector conditions provide a solid foundation for sustained economic recovery,” he said.

“The Bank of Ghana will therefore continue to pursue a prudent, disciplined, and data-driven approach to monetary policy.”

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These included the 2025 economic conditions, the policy measures the central bank has adopted, and the outcomes and on the general macroeconomic and financial sector, plus the 2026 economic outlooks.

The meeting also allowed the BoG’s technical team to discuss with committee members a detailed Monetary Policy Report.

Read the full speech of Dr. Asiama during the meeting below:

Speaking at a New Year media briefing on Friday, January 16, Dr. Asiama underscored the Bank’s commitment to deepening partnerships with journalists, stressing that effective media engagement is critical to enhancing public understanding of economic policy.

“As we look into 2026 and beyond, we are committed to deepening our collaboration with you, the media,” he said, adding that the Bank will expand its training programmes and introduce a dedicated forum for editors, producers, presenters, and behind-the-scenes media professionals.

Dr. Asiama also unveiled a new recognition initiative dubbed the Governor’s Economic and Financial Story of the Year, designed to encourage accurate, insightful, and creative reporting on economic issues and the work of the Bank. The winning journalist will receive sponsorship to attend the IMF–World Bank Meetings.

“This initiative aims to inspire creativity and innovation in storytelling,” he said, urging media houses to actively participate.

The Governor further assured journalists of the Bank’s commitment to open and proactive engagement through its Communications Department, noting that this approach would help build confidence in reporting on economic policies that affect households, businesses, and workers.

“No decision is taken by us lightly. Our responsibility is to act in the long-term public interest, even when the short-term choices are difficult,” he added.

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In a Facebook post, Amin Adam described as “mind-boggling” the BoG Governor’s inability to readily provide documentation or detailed explanations on a reported GH₵3.8 billion loss said to have been incurred under the programme in 2024, when queried by the Chair of the Public Accounts Committee.

He further expressed concern that if such losses were indeed incurred, they were not reflected in the Bank of Ghana’s published 2024 financial statements, yet were publicly referenced by the Governor.

According to the former minister, this contradiction raises serious questions about the accuracy and consistency of the central bank’s disclosures.

Amin Adam also noted that data on such losses would ordinarily form part of information submitted to the International Monetary Fund (IMF) under the Extended Credit Facility (ECF) programme.

He questioned why IMF review reports made no reference to the alleged 2024 losses, while only highlighting reported losses of $214 million in 2025.

“This situation leaves more questions than answers,” he argued, suggesting the possibility of misreporting, which he stressed would constitute a serious breach under an IMF-supported programme.

The former minister concluded by reiterating his long-held view that the current BoG Governor operates more as a partisan political actor than as an independent head of the central bank.

Read the full post below:

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BoG Governor Dr. Johnson Asiama disclosed this during an appearance before Parliament’s Public Accounts Committee (PAC), following cumulative losses estimated at about GH¢2.2 billion.

Preliminary figures indicate significant net losses from both programmes over recent years, highlighting the need for independent scrutiny. “There were quite too many issues under the Gold-for-Oil programme that we needed to unearth, and the Board therefore authorised an external audit. We obtained Public Procurement Authority approval about two months ago, and the exercise is currently underway,” he said.

Under the Gold-for-Oil programme, the central bank used gold instead of foreign exchange to procure petroleum products, aiming to ease pressure on the country’s dollar reserves. The scheme accumulated losses over the past three years, with an estimated GH¢74 million in 2022, GH¢317.69 million in 2023, and GH¢1.8 billion in 2024—bringing total losses to roughly GH¢2.2 billion.

The Gold-for-Reserves programme remained profitable in 2022 but slipped into deficit thereafter, posting losses of over GH¢1 billion in 2023 and about GH¢3.8 billion in 2024.

Dr. Asiama emphasized that these figures are provisional and subject to the ongoing audit. He noted that commenting on 2025 performance would be premature, adding that audited financial statements are expected by March.

“It is not simply a question of losses then and now. These schemes were introduced to address specific national problems,” he said, urging a broader assessment of the policy objectives behind the initiatives.

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Recent figures from the Bank of Ghana’s Monetary Policy Report show a gradual easing in borrowing costs, with average lending rates declining from 26.6 percent to 24.2 percent. Money market indicators have also softened, as the 91-day Treasury bill rate dropped from 13.4 percent in July to 10.3 percent in August 2025.

Speaking during a courtesy visit by the Asantehene, Otumfuo Osei Tutu II, to the central bank on Wednesday, January 7, 2026, Dr. Asiama said policy efforts are focused on maintaining disinflation gains while supporting the recovery of credit growth and broader economic activity.

He remarked, “Market rates have followed this trend, easing financial conditions while maintaining prudence. I have said on many occasions that my prayer and wish is that by the end of my four-year tenure, lending rates will not be more than 10 percent.”

Dr. Asiama also highlighted improvements in Ghana’s external buffers, noting that gross international reserves have exceeded 13.8 billion dollars, describing the figure as unprecedented in the country’s history.

He added that the central bank will continue to collaborate closely with the Ministry of Finance and other institutions to safeguard monetary stability while expanding access to reasonably priced credit.

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The visit follows a similar engagement with the Inspector General of Police (IGP), Christian Tetteh Yohuno, on Tuesday, and is being interpreted as a signal of continued collaboration between traditional authority and the nation’s economic leadership.

While largely ceremonial, the visit carries national significance, coming at a time when Ghana is making notable strides toward economic stabilization.

The Asantehene has consistently championed initiatives that promote economic growth, private sector expansion, and social cohesion. His meeting with the central bank leadership underscores the enduring role of chieftaincy in national economic discussions.

Discussions with the Governor reportedly touched on the broader economic outlook, including inflation trends, business access to credit, and efforts to bolster public confidence in financial institutions — issues that directly impact traders, entrepreneurs, and households nationwide.

Beyond economic policy, the courtesy call also reflects institutional respect and continuity, reinforcing the longstanding relationship between Ghana’s traditional leadership and state institutions.

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Speaking at the listing of First Atlantic Bank on the Ghana Stock Exchange, Dr. Asiama said recent amendments to the Bank of Ghana Act, approved by Parliament, are central to restoring confidence and strengthening the independence of the central bank.

He noted that the reforms are designed to prevent a repeat of the excesses and structural weaknesses that culminated in the Domestic Debt Exchange Programme.

He added that complementary reforms introduced by the Ministry of Finance are reinforcing Ghana’s macroeconomic framework and laying the groundwork for a more resilient and disciplined financial system.

Reflecting on the recent past, Dr Asiama recalled what the World Bank described as a “homegrown crisis,” when inflation surged to 54.1 per cent at the end of 2022, and the cedi lost more than half of its value between 2022 and 2023.

At the time, foreign exchange reserves fell to less than half a month of import cover, the lowest level recorded in decades.

“The crisis battered confidence across the financial system,” he said, pointing to the severe impact on capital markets amid fiscal stress and extreme exchange-rate volatility.

While the Domestic Debt Exchange Programme was unavoidable, he noted that it placed heavy strain on banks, institutional investors and capital markets, exposing deep vulnerabilities in Ghana’s narrowly structured financial system and severely testing balance sheets.

“The lesson is clear,” Dr Asiama said. “Sustainable stability requires strong institutions, diversified funding, deep markets and shared ownership, not just short-term fixes.”

He stressed that Ghana’s recovery is now “real, measurable and meaningful.”

Inflation has dropped sharply to 6.3 per cent as of the end of November 2025 and could fall closer to 5 per cent by year-end, potentially the lowest level in many years. The cedi has also appreciated by more than 24 per cent year-to-date, supported by tighter monetary policy, stronger external buffers and improved fiscal discipline.

Dr Asiama cautioned against overreading the currency’s performance, noting that the gains follow a 19 per cent depreciation the previous year and largely represent a correction rather than an unsustainable surge.

“This is not a real appreciation to be concerned about,” he said, stressing that the currency’s strength is anchored in improved macroeconomic fundamentals.

Gross international reserves have climbed above US$11 billion, providing close to five months of import cover, while GDP growth reached 6.3 per cent in the first half of 2025, with non-oil growth nearing 8 per cent.

“These outcomes reflect discipline and coordination across policy institutions,” the Governor said, adding that Ghana’s recovery must now be consolidated through sustained reform.

Speaking at the Cedi @60 International Currency Conference, the governor of the central bank, Dr Johnson Asiama, emphasised the need to address the pressures of currency substitution and dollarisation that threaten Ghana’s economic sovereignty.

“At the same time, we are strengthening efforts to re-anchor the Cedi as the unquestioned medium of exchange, addressing the pressures toward currency substitution and dollarisation that threaten our economic sovereignty”

“As we advance this work domestically, our engagement with the global community becomes even more important,” he said.

The Governor’s remarks highlight the central bank’s commitment to maintaining currency stability and promoting the use of the cedi in domestic transactions

The Bank of Ghana has implemented various measures to strengthen the cedi, including monetary policy interventions and efforts to increase foreign exchange inflows.

As Ghana continues to navigate the complexities of the global economy, the BoG’s engagement with the international community is crucial in promoting the country’s economic interests.

The Cedi @60 International Currency Conference provides a platform for stakeholders to discuss the future of the Ghanaian cedi and its role in the country’s economic development.

The conference has brought together policymakers, economists, and industry experts to share insights on the cedi’s performance and prospects.

The BoG’s efforts to strengthen the cedi are expected to contribute to Ghana’s economic growth and development, promoting a stable and prosperous economy for all Ghanaians.

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Speaking at the 10th anniversary celebration of the Ghana Fixed Income Market (GFIM) in Accra, Dr. Asiama described the platform’s journey as “an experiment in confidence” that has evolved into a trusted bridge between savings and investment.

“From GH¢5.2 billion in trade volume at inception, cumulative trading has now surpassed GH¢1.2 trillion,” he said. “In one decade, GFIM has moved from concept to cornerstone, connecting savers, investors, and institutions in a shared purpose — financing Ghana’s development with integrity and discipline.”

The Governor noted that the market’s strength reflects collaboration among the Bank of Ghana, the Ghana Stock Exchange, the Ministry of Finance, and market participants, which helped transform what was once a fragmented system into a transparent, centralised platform.

Dr. Asiama acknowledged the turbulence caused by Ghana’s 2022-2023 domestic debt exchange, which sharply reduced trading volumes, but said renewed investor confidence has since driven activity back to GH¢214 billion as of October 2025.

“Credibility is capital. Without it, no reform endures,” he emphasised.

He highlighted that inflation has fallen from 54 percent to 8 percent, the cedi has appreciated by more than 35 percent year-to-date, and reserves now cover nearly five months of imports — evidence, he said, of improved fiscal-monetary coordination.

Looking ahead, Dr. Asiama outlined three priorities for the next decade of GFIM’s growth:

Depth — implementing active repo and securities-lending frameworks to sustain liquidity.

Diversity — widening the issuer base beyond government securities to attract more corporates.

Digitalisation — integrating GFIM with Ghana’s payment systems for real-time processing and settlement.

He revealed that corporates have so far raised about GH¢24 billion through GFIM, while pension funds hold over GH¢90 billion in its assets — a signal of potential for greater private-sector participation.

“Our goal is to make Ghana the reference point for transparency, innovation, and sustainability in African fixed-income markets,” Dr. Asiama said, adding that Ghana could anchor regional capital-market integration under the AfCFTA Financial Integration Framework.

The Governor concluded by praising the resilience of market actors during Ghana’s recent economic challenges.

“We did not merely build a trading platform; we built an institution rooted in trust. And trust, sustained through discipline, transparency, and partnership, remains our most valuable national asset,” he said.

The event, held under the theme “Deepening Markets, Expanding Possibilities,” brought together government officials, financial-sector leaders, and international partners to chart the next phase of Ghana’s capital-market development.

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Speaking at the official launch of the 60th anniversary of the Cedi in Accra on Tuesday, October 28, Dr Asiama noted that the improved reserves position reflects prudent monetary management, favourable trade inflows, and ongoing fiscal consolidation efforts.

“Our gross international reserves are currently $12 billion,” he said.

He explained that the current reserve level is offering “a robust cushioning against external volatilities,” safeguarding the cedi and supporting stability in the foreign exchange market.

He reiterated the Bank’s resolve to pursue sound monetary policies aimed at preserving the gains achieved so far, while continuing to promote a resilient and inclusive financial sector that supports sustainable economic growth.

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He said the Cedi@60 celebration should be seen not merely as a ceremonial milestone but as a renewed call to defend the country’s economic sovereignty.

Speaking at the anniversary event themed “Sovereignty, Stability, and Resilience” in Accra, Dr. Asiama said the occasion was a time for reflection on Ghana’s financial journey and the collective responsibility to preserve the gains made over the decades.

“Let me be clear, this is not just another policy event. It is a moment for Ghana to pause and reflect — not on what we have built so far, but on what we must now protect and advance,” he stated.

“This anniversary belongs to all of us because when we celebrate the Cedi, we celebrate our journey towards economic self-reliance and national confidence,” he added.

Dr. Asiama recounted Ghana’s landmark decision in 1965 to replace the Ghanaian Pound with the Cedi, describing it as a “powerful declaration” of economic independence and self-determination.

“Sixty years ago, Ghana made a powerful declaration. We said farewell to the Ghanaian Pound and introduced the Cedi, our very own national currency. In doing so, we were not just changing banknotes — we were affirming that Ghana’s independence must include the ability to define and defend our own monetary destiny,” he said.

Reflecting on the Cedi’s evolution, the Governor highlighted key reforms, including redenominations in 1967 and 2007, as well as the addition of security features, commemorative editions, and Adinkra symbols that celebrate Ghanaian heritage.

“Each transformation over the years — from the integration of advanced security features and commemorative notes to the use of indigenous symbols and portraits of our national heroes — reflects Ghana’s story: one of resilience, innovation, and pride,” he remarked.

He emphasised that the Cedi remains more than a means of exchange — it is a symbol of national pride and shared determination.

“Whether it’s exchanged in bustling markets, used to pay salaries, or saved for future dreams, the Cedi stands as a lasting symbol of our journey and our unyielding commitment to shape our own destiny,” Dr. Asiama said.

The Cedi@60 celebration marks six decades since Ghana introduced its national currency, replacing the Ghanaian Pound in 1965, symbolising the nation’s continuous pursuit of economic sovereignty and stability.

Source: Adomonline

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He wants to make the Ghana cedi the sole currency of trade and payment in the country.

Speaking in an interview with the IMF at the ongoing IMF/World Bank Spring Meetings in Washington DC, Dr Asiama said de-dollarisation has become central to achieving monetary and price stability.

He described the persistence of dollar use in Ghana’s economy as a structural weakness that undermines the effectiveness of monetary policy.

“So my mandate is clear — to achieve price and financial stability. It’s been eight months now. I believe we are on course. We are on course towards achieving that. But a couple of things bother me.

“First of all, the issue of dollarisation. You know, I’ve seen this for many years. I started central banking some 30 years ago. The phenomenon has been there, and so we are tackling it,” he said.

Dr Asiama disclosed that the central bank will use the upcoming Cedi at 60 celebration to launch a renewed campaign to promote exclusive use of the local currency in all transactions.

“On the 28th of this month, we are having the Cedi at 60 celebration. The local currency will be 60 years old this year, and we want that to mark a new beginning, because when we use the local currency in all transactions, that enhances the efficiency of monetary policy.”

He stressed that reducing dollar dependence would be one of the key legacies he hopes to leave behind.

“It’s at the core of most of our problems, and so it’s one of the things I would want to be remembered for — that I came, I solved that problem, I made the local currency the currency of choice,” he noted.

Dr. Pandit also outlined a broader vision for the Bank of Ghana, emphasising the need for institutional agility to keep pace with global financial evolution.

“The next thing is to have a central bank that is agile, a central bank that is ready and able to contend with the new challenges that most central banks face,” he said.

He cited the rise of fintech and cryptocurrencies as new areas of risk requiring proactive regulation.

“As I said when I started my career some 30 years ago, many of the things we are seeing now weren’t there. For example, fintechs — we do not have fintechs those days.

“But I believe that if not handled properly, fintechs, for example, in that area could be an area where a risk could emerge going forward.

“And so we are looking at that industry well. We are mending the legislation there as well. And then you have the cryptocurrencies as well. This is another challenge for central banks,” he said.

Dr Asiama said his goal is to position the central bank as a forward-looking institution capable of responding to emerging risks with confidence and flexibility.

“What I want to see is a central bank that is ready and able to adapt. It is critical today. It could be something else tomorrow. It could be anything. Who knows. But we should have the manpower, we should have that agility, we should have the balance sheet to be able to contend with any of these risks as they emerge in the future. That’s what my vision is,” he concluded.

Source: Abubakar Ibrahim

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Speaking in Washington DC during the ongoing IMF/World Bank Spring Meetings, he said his clear mandate is to achieve price and financial stability, and that after eight months in office, he believes the country is on course.

He said one of the biggest challenges confronting the economy is dollarisation, a problem he has observed throughout his 30-year career in central banking.

According to him, the widespread use of foreign currency undermines the effectiveness of monetary policy and weakens confidence in the cedi.

“I’ve seen this for many years. I started central banking some 30 years ago. The phenomenon has been there, and so we are tackling it to make the local currency the sole legal tender,” he said.

Dr Asiama disclosed that on October 28, the Bank of Ghana will mark the 60th anniversary of the cedi in an event dubbed “The Cedi at 60.” 

He said the celebration will symbolise a new beginning for Ghana’s currency regime.

“We want that to mark a new beginning, because when we use the local currency in all transactions, that enhances the efficiency of monetary policy,” he said.

“It’s one of the things I would want to be remembered for, that I came, I solved that problem, I made the local currency the currency of choice.”

Beyond currency stability, Dr Asiama said his vision is to modernise the central bank to effectively manage emerging risks in the financial ecosystem.

He noted that the banking landscape has changed dramatically from when he began his career three decades ago.

He cited fintechs and cryptocurrencies as new realities that must be managed carefully to preserve financial stability.

“We do not have fintechs those days, but I believe that if not handled properly, fintechs, for example, that area could be an area where a risk could emerge going forward. And so we are, you know, looking at that industry well. We are mending the legislation there as well,” he said.

On digital assets, Dr Asiama acknowledged that cryptocurrencies pose another challenge for modern central banks.

He emphasised the need for a forward-looking institution that can adapt to any emerging threat or innovation.

“What I want to see is a central bank that is ready and able to adapt. It is critical today. It could be something else tomorrow. It could be anything. Who knows, but we should have the manpower, we should have that agility, we should have the balance sheet to be able to contend with any of these risks as they emerge in the future,” he said.

For Dr Asiama, his defining legacy will not only be about achieving monetary stability but also about creating a resilient, adaptive, and innovative central bank prepared to meet the demands of a rapidly changing financial world.

Source: Abubakar Ibrahim

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Speaking in an interview with George Wiafe the IMF at the ongoing IMF/World Bank Spring Meetings in Washington DC on October 16, he insisted that the Bank of Ghana is rebuilding its reserves, not burning them.

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

He explained that what appeared to be heavy central bank activity between the second and third quarters of 2025 was mainly due to “lumpy payments” that had to be cleared during that period.

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

He added that the Bank of Ghana also had to meet obligations to some domestic debt exchange bondholders who opted to exit their investments when the cedi appreciated.

“Some bondholders felt that, because the currency had appreciated, it was the right time to take up their investment. We had to allow them to go,” he said. “So we did a lot of lumpy payments between July and August.”

According to him, those payments temporarily created the impression that the Bank was aggressively intervening in the market, but that was not the case.

He explained that the central bank had to step in to stabilise the market during a period when remittance inflows — which usually inject over US$6 billion annually into the economy — declined.

“Immediately after the currency appreciated, we saw a decline in remittance inflows,” he noted. “So, in the mix of that, the central bank needed to step in to meet all those lumpy payments. The interbank FX market had dried up during that time, and so the central bank needed to provide that support.”

Dr. Pandit said the situation has now improved significantly.

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

He clarified that with increased inflows through the commercial banks, the central bank’s role in the market will reduce while reserves are rebuilt.

“To give you an example, as of yesterday, we had committed to make available $150 million. This morning, when I checked, the market had picked up only $90 million — so $60 million automatically goes into our reserves,” he said.

“Same thing Tuesday — we made available $150 million, the market picked up less than half that. So automatically it goes into our reserves,” Dr Pandit explained.

He stressed that the Bank of Ghana’s interventions are carefully calibrated to smooth out volatility, not to deplete reserves.

“We do not over-support the markets at all. All we seek to do is to limit the volatilities in the markets, to ensure that we have that smooth dynamics in the market,” he said.

Dr. Pandit concluded that the central bank remains committed to a stable and transparent foreign exchange framework that balances market needs with reserve accumulation.

Source: Myjoyonline

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According to him, the country is currently ahead of most of the targets and benchmarks under the IMF programme.

The Governor noted that Ghana has worked hard to undertake the necessary reforms to firmly stabilise the economy.

Dr Asiama gave the assurance during an interaction with the IMF’s Director of the African Department, Abebe Selassie, on the sidelines of the IMF/World Bank Annual Meetings in Washington DC.

The discussion formed part of the “Governor Talks Series” organised by the IMF, focusing on Ghana’s recent macroeconomic journey—marked by external shocks, fiscal vulnerabilities, and a challenging global environment.

The Governor’s assurance comes at a time when there have been reports suggesting that the country could be forced to extend the IMF programme to give investors and development partners confidence in government’s commitment to fiscal discipline.

However, Dr Asiama’s remarks appear to calm such fears.

“We should not forget that when this administration took over, there were concerns that we should cancel the programme, and there were doubts about whether we could carry on with it,” he said.

“But the current developments show that we have delivered and turned things around,” he added.

He further noted that “the current ECF programme has also introduced a lot of structural reforms, including those designed to strengthen the Bank of Ghana’s operational capacity and its monetary policy framework.”

Ghana signed up for the IMF programme in 2023, which is expected to end in May 2026. According to the Fund, it has already advanced more than US$2 billion to support Ghana’s economic recovery.

Dr. Asiama also praised the IMF for the support it has provided to help stabilise the economy.

Ghana’s Economic Recovery

The Governor highlighted some of the drastic measures undertaken by both fiscal and monetary authorities to stabilise the economy.

“We met an economy that was challenged, with high levels of inflation, and this was our priority when this administration took over,” he said.

Dr. Asiama added that the Bank of Ghana worked hard to tighten monetary policy and step up liquidity management.

He revealed that following the high inflation levels experienced in 2023 and 2024, the central bank moved swiftly to raise the policy rate and strengthen liquidity controls.

“These measures have helped to reduce inflation to 9.4 per cent as of September 2025,” he said.

“Our policies, going forward, will be data-driven and adaptable to changes in the economy,” the Governor added.

On sustaining the current inflation levels, Dr Asiama emphasised that “now that inflation is within the target band, the challenge is to sustain the gains by continuing to implement sound monetary and exchange rate policies to ensure inflation remains within target.”

He also highlighted the critical role of Ghana’s Gold for Reserves programme, saying it has yielded positive results and enabled the Bank of Ghana to build its reserves.

Exchange Rate Framework

Dr Asiama disclosed that, in collaboration with the IMF, the Bank of Ghana has developed a structured foreign exchange operations framework to intermediate FX flows and smooth excessive market volatility while building international reserves.

“As these framework changes take place, they will bring further transparency to our foreign exchange market operations and help ease volatilities in the market,” the Governor said.

Source: George Wiafe

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“While we welcome progress under the Common Framework and the Global Sovereign Debt Roundtable, we urge deeper commitment to predictable implementation and improved debt transparency,” he said.

The Governor made the appeal during the African Caucus meeting with IMF Managing Director Kristalina Georgieva on the sidelines of the IMF/World Bank Annual Meetings in Washington, D.C., USA.

Ghana and Global Sovereign Debt Roundtable Discussions

Launched in 2023, the Global Sovereign Debt Roundtable aims to build greater understanding among key stakeholders on debt and restructuring challenges, address shortcomings in restructuring processes, and promote coordinated solutions both within and outside the Common Framework.

It has helped foster alignment on principles and practices that support smoother debt restructuring. The initiative, co-chaired by the IMF, World Bank, and the G20 Presidency (currently South Africa), includes bilateral creditors (Paris Club and non-Paris Club members), private creditors, and borrowing countries.

The platform has played a significant role in Ghana’s debt restructuring efforts with both bilateral and commercial creditors since December 2022.

The programme is expected to help reduce Ghana’s debt-to-GDP ratio from about 90% to 55% by 2028. However, recent Bank of Ghana data suggests the country may have achieved this milestone ahead of schedule.

The government recently announced the signing of a Bilateral Debt Restructuring Agreement with the Kingdom of Spain, marking the fifth such agreement under Ghana’s official creditor framework. This has contributed to lowering Ghana’s total debt stock to about GH¢628.9 billion, representing a 44.9% debt-to-GDP ratio.

Credit rating agencies have also cited Ghana’s progress in restructuring bilateral debt as a major reason for improving the country’s credit outlook.

Supporting the IMF

Speaking at the same programme, Dr. Johnson Asiama reiterated the importance of a well-resourced IMF to reinforce its central role in the global financial safety net amid growing international economic pressures.

“A resilient IMF is essential to help countries—especially in Africa—manage persistent shocks and maintain stability,” he stated.

He called for stronger concessional lending and timely, predictable support, emphasising that completing the 16th General Review of Quotas (GRQ) and advancing quota realignment in the 17th GRQ are vital for fair representation and enhanced IMF effectiveness.

Dr Asiama also stressed the need for stronger fiscal institutions to promote transparent and accountable borrowing aligned with national development goals while reducing vulnerabilities.

On strengthening risk management frameworks, he highlighted the need for the IMF to proactively safeguard financial stability amid Africa’s accelerating digital transformation and the growing interdependence between banks and governments.

“Innovations like artificial intelligence, blockchain, and digital currencies present both opportunities and risks,” he noted.

He further called for enhanced IMF technical support to bolster cybersecurity, strengthen risk-based supervision, and advance coordinated macroprudential policies to ensure resilient financial systems across Africa.

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He explained that the funds form part of a new financing arrangement introduced by COCOBOD to support cocoa purchases for the new crop season.

Speaking in an exclusive interview with Joy Business’ George Wiafe, Dr. Asiama noted that the inflows will boost the Bank of Ghana’s reserves and strengthen its capacity to support the local currency in the coming weeks.

According to him, the development will also signal to the market that the central bank is well-positioned to intervene when needed to meet the demands of businesses and commercial banks.

The Bank’s Economic and Financial Data released in July put Ghana’s international reserves at $11.1 billion.

COCOBOD’s New Financing Deal

In 2023, COCOBOD introduced a new funding model for cocoa bean purchases, requiring global traders to deposit at least 60% of the value of their forward contracts at the start of the season.

This system replaces the pre-export syndicated loan from international banks, which had been in place for over three decades.

Under the arrangement, part of the traders’ deposits is used to finance purchases from farmers through partnerships with licensed cocoa buying companies (LBCs). Traders provide funds to LBCs to purchase cocoa, while COCOBOD serves as an intermediary.

Cedi’s Outlook

Dr. Asiama expressed optimism about the outlook for the Ghana cedi despite recent pressures.

“As regulator, we have taken the needed actions to ensure that things do not get out of hand,” he assured.

He maintained that Ghana’s macroeconomic situation remains solid, giving businesses confidence in the cedi’s stability as well as in ongoing measures to improve market liquidity.

“Our net international reserves have not run out, and all the indicators point to a favourable outlook. We currently have it,” he stressed.

The Governor further assured that through “discipline, transparency, and firm regulation,” the central bank will create a market where the cedi can trade freely but predictably, anchored in confidence.

However, he cautioned that individuals exploiting loopholes—whether through offshoring, fueling the black market, or filing fake import forms—will face sanctions.

Source: Abubakar Ibrahim

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According to him, the era of high interest rates cannot be sustained, adding that “it is now time for the banks to begin reviewing these strategies not only to protect margins, but also to serve the broader economy”.

The Governor disclosed this at the inauguration of the Bank of Ghana Chair in Economics and Finance at the University of Ghana Legon.

The move by the Bank of Ghana is part of efforts to encourage long-term commitment to knowledge, research, and the nurturing of a new generation of thinkers who will shape the financial architecture of tomorrow.

Speaking at the programme, the Governor also said the banking sector must become a catalyst for growth, with more targeted and productive lending to Ghanaian enterprises.

On managing exchange Rate regimes, the Governor argued that “we must be honest about this divergence and work toward exchange rate frameworks that are transparent, rules-based, and credible.”

The Governor was also of the view that in the era of modernisation, “Central Banks must balance price stability with financial stability and navigating increasing government reliance on domestic financing.”

At the recent Monetary Policy Committee presser, Dr. Asiama re-echoed these concerns about the high interest rates, arguing that the rates have started dropping and there are strong indications that they could go down further.

Managing Global Pressures

Dr. Asiama was also of the view that “we cannot always prevent global disruptions, but control our response”.

“The Cedi’s appreciation over 42% year-to-date and supported by over US$11 billion in international reserves, is evidence of how disciplined policy coordination between the central bank and fiscal authorities, supported by an IMF programme, can deliver results”, he pointed out.

Partnership with University of Ghana

Throwing Light on the partnership with the University of Ghana on the Research Chair,  the Governor described the initiative as a longstanding relationship between two institutions with “shared responsibility and national development”.

Under this initiative, the Bank of Ghana with the Chair will identify high-performing university graduates with exceptional potential in economics, finance, and public policy.

These young leaders , according to the Governor will be offered structured pathways to top global institutions, through scholarships, internships, and policy immersion opportunities.

The Governor also added that going forward, the plan is to  “ launch joint research initiatives in areas such as inflation targeting, exchange rate management, digital finance, regulation of, and monetary policy transmission

Source: Joy Business 

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“We will rather review some developments in the market ahead of the actual meeting in the next 10 days,” the Governor added.

According to him, “Many people thought that we were going to make a policy statement that will not happen”.

The Governor of the Bank of Ghana disclosed this at the ABSA-UPSA Quarterly Banking Roundtable in Accra today.

Background

BoG in a statement issued on Wednesday, announced that the Monetary Policy Committee (MPC) will hold an emergency meeting on Thursday, 17th July 2025, to review recent developments in the economy.

It added that the policy decision of the committee will be announced on Friday, 18th July 2025.

There had been strong expectations this gathering will see the regulator cut the rate by some significant margin.

But it appears that based on the latest revelation by the Governor, there will not be any decision on the policy rate after the meeting.

Supporting the Cedi’s Stability and Counterfeiting 

Speaking at the meeting, the Governor also expressed reports that some Ghanaians are supporting some foreign nationals who are engaged in currency counterfeiting.

“This development is very unfortunate, and everything must be done to check it,” the Governor noted.

The Governor also argued that everything must be done with all hands on deck to support the local currency’s stability.

Source: Joy Business

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The chiefs congratulated Dr. Asiama on his appointment and used the occasion to express the hopes and expectations of the people of South Dayi, drawing attention to critical challenges such as water shortages, inadequate school infrastructure, and poor road networks.

In response, the Governor struck a deeply personal tone, assuring the chiefs that he remains committed to the progress of his home district.

He revealed that he is already in discussions with the Deputy Minister of Finance to permanently resolve the persistent water crisis in the Kpali and Tongor areas.

He expressed confidence that the issue will be addressed before the next dry season sets in.

On education, Dr. Addison outlined plans to improve infrastructure by providing dormitories for all Senior High Schools in the district.

He added that the Kpali area, currently the only traditional area without a secondary school, will soon have a Senior High School constructed to ensure educational equity.

He also highlighted efforts to fast-track the completion of the Asikuma–Dzemeni road, a key economic route, noting that he is applying pressure at the ministerial level to ensure the project moves forward.

Dr. Addison thanked Deiga, one of the traditional leaders, for his support and key role in his appointment. He further stated his readiness to work closely with the Member of Parliament and other stakeholders to attract more development into the district.

Proposing a common district festival as a unifying cultural event, the Governor encouraged the chiefs to consider initiatives that bring the people together and strengthen identity and pride in South Dayi.

He concluded by affirming that his door remains open to the people of the district and that he is willing to support any initiative that brings tangible development to the area.

Also present at the meeting were South Dayi Constituency Chairman, Mr. Prince Alex Adoboe; Mr. Prosper Kwame Ofosu; and legal practitioner Emmanuel Kpekata, Esq., who facilitated the engagement.

Source: Ivy Priscilla Setordjie

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Speaking at the internal launch of the Cedi@60 anniversary celebration at the Bank Square, Dr. Asiama noted that the Bank has, over the years, implemented key reforms to preserve monetary stability.

“The Bank has strengthened our inflation-targeting framework, enhanced regulatory oversight, and embraced innovation across payment systems,” he said.

He was quick to credit the Bank’s staff for the gains made over the years, emphasizing that, “These reforms are the result of the diligence and professionalism of Bank staff, past and present.”

Looking ahead, Dr. Asiama said the future of the cedi must be shaped by digital finance, the African Continental Free Trade Area (AfCFTA), climate change, and growing global interconnectedness.

“We must ensure that future generations inherit not just a stable currency, but a stronger, more respected economy,” he stated.

He called on staff to see the cedi’s legacy as a call to action. “Let us recommit to the mission of preserving its strength, supporting price stability, and advancing inclusive growth,” he urged.

The Governor also praised the role played by Bank staff, retirees, and pioneers in sustaining the currency’s strength over the decades, expressing his “deepest appreciation for all the work done over the years.”

Dr. Asiama announced that the day’s event marked the beginning of a six-month celebration of the cedi’s 60th anniversary.

Activities lined up include:

• The official launch of Cedi@60 on August 8 at the Accra International Conference Centre,

• Public lectures and policy dialogues on the past, present, and future of the cedi,

• Educational outreach to raise awareness, especially among the youth,

• A historical exhibition tracing the evolution of the currency, and

• A national currency conference at the end of the year.

He said this year’s celebration theme, “60 Years of the Cedi: A Symbol of Sovereignty, Stability, and Economic Resilience”, captures the deeper meaning of what the country is commemorating.

Source: Abubakar Ibrahim

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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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This follows growing public outcry and demands for accountability after a team of heavily armed National Security operatives raided Dr. Addison’s Roman Ridge home on March 19.

The incident, which saw officers disabling CCTV cameras and ransacking the property, has raised concerns about due process and the motives behind the operation.

Lawmakers, particularly from the Minority, have called for full disclosure on the legality and justification for the search, insisting that Parliament must hold the government accountable for the actions of security agencies.

The Interior Minister is expected to clarify the basis for the search warrant, the allegations leading to the operation, and the role of National Security operatives in the exercise.

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Speaking on the floor of Parliament when the Governor appeared to respond to issues concerning the BoG’s new head office building, Afenyo-Markin referenced past concerns about the central bank’s regulatory role and warned against selective scrutiny of its activities.

“I recall that in the 2015 State of the Nation Address, Mr. President raised concerns about poor supervision of the banking sector by the Bank of Ghana. The Governor today was the Deputy Governor then. Are we now picking and choosing which matters we want the Governor to brief us on?” he questioned.

Addressing Dr. Asiama directly, he urged him to remain independent and avoid political interference.

“Mr. Governor, don’t make yourself a tool for political football,” Afenyo-Markin cautioned. “The role of the Governor of the central bank is critical to the economy of this country. I do not want to politicise the office of the Governor, and I urge others to do the same.”

He further advised the Majority in Parliament to tread carefully in their handling of economic issues, warning that their approach could harm the country’s financial stability.

The Effutu MP’s comments come after Dr. Asiama was scheduled to brief the House on the cost of the new Bank of Ghana headquarters.

However, the Minority opposed the briefing, arguing that the right procedure had not been followed, while the Majority insisted that there was nothing irregular about the process.

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Appearing before Parliament to answer questions on the decision, Dr. Asiama explained that the Bank of Ghana’s board at the time considered acquiring land for the project.

However, disagreements over a specific location led to no concrete steps being taken before the tenure of the board ended.

“The discussions around a new headquarters for the Bank of Ghana date back to 2011 when the board at the time considered acquiring land for the project. However, the board at the time could not settle on a specific location until its tenure ended,” he stated.

He added that the matter resurfaced in 2016 when he served as the Deputy Governor, but once again, no final decision was made on the location.

“Mr Speaker, even in 2016, when I was the Deputy Governor, the same issue was being considered, however, we could not settle on a specific location,” he noted.

Dr. Asiama further revealed that in 2019, under a new board, a structural integrity audit of the existing headquarters was conducted. The audit revealed significant defects in the building, which was constructed in the late 1950s, deeming it unfit for purpose.

“In 2019, under a new board of the Bank of Ghana, a structural integrity audit was conducted, and this showed that the existing headquarters, which was built in the late 1950s, had developed significant structural defects and was no longer fit for purpose,” he concluded.

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The President gave the assurance on Tuesday when he formally swore in Dr. Asiama as Governor and Dr. Zakari Mumuni as First Deputy Governor of the Bank of Ghana at the Jubilee House in Accra.

He emphasized that the appointments were not merely routine exercises to satisfy Article 183(4) of the Constitution but a deliberate commitment to upholding the Bank of Ghana’s core mandate under Article 183(1-3)—to regulate currency, ensure monetary stability, and promote sustainable economic development.

“It is in full adherence to Section 17(1) of the Bank of Ghana Act, 2002 (Act 612), that these appointments uphold the legal stipulation that the Governor and Deputy Governors of the Bank of Ghana be individuals of demonstrable financial and banking experience,” President Mahama stated.

He described Dr. Asiama and Dr. Mumuni’s appointments as an affirmation of their professionalism, integrity, and proven competence.

Dr. Asiama, a distinguished economist with a PhD from the University of Southampton, has over two decades of service at the Bank of Ghana. Rising through the ranks from banking supervision and financial markets to leading research and policy implementation, he has played a pivotal role in shaping Ghana’s monetary policy and ensuring financial stability.

“As Deputy Governor, Dr. Asiama was instrumental in controlling inflation, stabilizing the currency, and strengthening regulatory oversight,” President Mahama noted. “His deep expertise in banking supervision, risk management, and digital finance makes him the right leader at this critical time.”

The President underscored the challenges facing Ghana’s financial sector, emphasizing that the task ahead demanded experience, foresight, and decisive leadership.

“With Dr. Asiama heading the Bank of Ghana, I am confident that we will rebuild trust, restore stability, and put our economy on a path of sustained growth,” he said. “I entrust him with this responsibility, knowing he will serve with diligence and excellence.”

Dr. Mumuni’s appointment as First Deputy Governor, President Mahama explained, recognizes his exceptional expertise in banking, financial markets, and economic policy.

With over two decades of experience at the Bank of Ghana, Dr. Mumuni has played a key role in shaping monetary policy and strengthening financial stability. His academic credentials, including a PhD from the University of Nottingham and an MPhil from the University of Ghana, reflect his deep understanding of the complexities of the economy.

“As First Deputy Governor, he will be a key pillar in supporting the Governor to implement sound policies, reinforce regulatory oversight, and navigate the challenges ahead,” President Mahama stated. “His experience and analytical rigor will be crucial in ensuring that the Bank remains steadfast in its mandate to maintain price stability, safeguard the financial sector, and drive sustainable growth.”

He added that Dr. Asiama and Dr. Mumuni bring the leadership, expertise, and vision needed to restore confidence in Ghana’s economy.

“To you, Mr. Governor and Deputy Governor, in discharging your mandate, you must go beyond mere technical considerations and act in full recognition that every statistic, every movement on a chart, and every shift in an index is more than just data—it is the pulse of an economy, a measure of resilience or distress,” the President said.

He stressed that behind economic indicators were real human stories—dreams either nurtured or shattered—requiring not just technical expertise but empathy and foresight.

“Our recent banking history has shown us the cost of neglecting this truth,” President Mahama remarked. He referenced the banking sector cleanup exercise, which led to thousands of job losses, arguing that some institutions could have been salvaged while ensuring stability.

“The test of your patriotism in this solemn duty of economic governance lies in learning from these missteps—recognizing that policies must not only enforce regulations but also safeguard the futures that depend on them,” he said.

On his part, Dr. Asiama expressed gratitude to the President and the Council of State for the confidence reposed in them.

He pledged to work towards restoring public trust, rebuilding confidence, and ensuring a stable and innovative economy.

“Through responsible financial sector governance, digital transformation, and sound economic policies, we will create an economic and financial system that is transparent, predictable, and stable,” Dr. Asiama assured. “Businesses will have the confidence to plan, and individuals will have access to a secure financial system that fosters growth and opportunity.”

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However, he emphasized that “this review should be done gradually” to prevent economic disruptions.

Dr. Asiama acknowledged the impact of the CRR on commercial banks, stating, “We recognize the impact of the Cash Reserve Ratio for commercial banks and intend to review it critically.”

He assured that “any adjustments must be phased to avoid unintended economic consequences.” His comments came in response to an appeal from the Governing Council of the Ghana Association of Banks (GAB) during a meeting to discuss industry challenges.

The meeting, requested by GAB members, aimed to foster an open dialogue between banks and the regulator to build trust and consensus on key financial policies.

Background on Cash Reserve Ratio Adjustment

In March 2023, the Bank of Ghana announced a reversal of the cash reserve ratio on local currency deposits for banks, increasing it from 12% to 14%. This measure was part of efforts to mop up excess liquidity in the market.

During the meeting, commercial banks appealed to the central bank to review the CRR, arguing that it was limiting financial intermediation and increasing banking costs.

The discussion also covered Ghana’s credit rating challenges and their impact on correspondent banking relationships. GAB members called for an upward revision of Nostro and affiliate exposure limits to ease constraints on international transactions.

In response, Dr. Asiama acknowledged the practical difficulties banks face in securing new correspondent banking relationships and committed to further assessing the situation.

Regulation of Foreign Exchange and Money Transfer Operators

The Governing Council of the Ghana Association of Banks urged the Bank of Ghana to end the mandatory sale of foreign exchange proceeds from mining and oil companies to the central bank.

They argued that allowing these proceeds to flow through the banking system would improve foreign exchange price discovery. Dr. Asiama assured them of his commitment to further engagement on this request.

Additionally, the Governor stated that the Bank of Ghana is working to review the operations of Money Transfer Operators (MTOs) and urged commercial banks to cooperate in streamlining the sector for greater transparency.

He highlighted the growing influence of MTOs and fintech companies in the remittance business and addressed concerns about regulatory gaps that could lead to foreign exchange losses for the country.

Special Dispensation for Commercial Banks and Agricultural Financing

Dr. Asiama also revealed that the central bank is committed to extending the special dispensation granted to commercial banks during the Domestic Debt Exchange Programme (DDEP).

This response came after banks raised concerns over the expiration of the special dispensation on restructured cocoa bonds under the DDEP, which is set to end in April 2025. Banks expressed fears that market illiquidity and COCOBOD’s financial position might make it difficult to sell these bonds.

On the issue of rising non-performing loans, Dr. Asiama emphasized the role of fiscal policy in reducing inflation and interest rates.

He reaffirmed the Bank of Ghana’s commitment to doubling agricultural financing and supporting the Ghana Incentive-Based Risk-Sharing System for Agricultural Lending (GIRSAL) in raising additional guarantee funds.

However, he also urged commercial banks to take the lead in stakeholder engagements to improve and de-risk selected agricultural value chains.

In a statement released on Thursday, the Movement described the appointment as a violation of constitutional principles and a move that erodes public confidence in Ghana’s banking system.

CDM pointed to several legal and constitutional violations in the selection of Dr. Asiama. According to Article 286(1) of the 1992 Constitution of Ghana, public officers, including the BoG Governor, must declare their assets and liabilities before assuming office.

The organization argued that given the unresolved allegations concerning Dr. Asiama’s role in Ghana’s financial sector crisis, his appointment lacked transparency and accountability.

Additionally, CDM referenced Article 35(8) of the Constitution, which mandates the state to eradicate corruption and abuse of power.

By appointing an individual whose financial conduct has been questioned, particularly regarding the collapse of UniBank and UT Bank, the government appeared to be flouting this provision.

The organization further cited Section 10 of the Bank of Ghana Act, 2002 (Act 612), which requires that the BoG Governor be a person of “recognized integrity, competence, and experience in financial matters.” CDM questioned whether Dr. Asiama met these stringent ethical standards.

Beyond constitutional concerns, CDM also emphasized Ghana’s obligations under international frameworks.

The United Nations Convention Against Corruption (UNCAC) mandates that state parties establish merit-based and transparent selection processes for public officials in positions of financial responsibility.

By reinstating Dr. Asiama without fully addressing concerns regarding his past financial dealings, the organization argued that Ghana was failing to meet these obligations.

CDM also referenced the Financial Action Task Force (FATF), a global watchdog against financial crimes, which stated that leadership in central banks must be free from ethical controversies.

The group noted that countries like the United States and the United Kingdom prohibit the appointment of officials with unresolved financial misconduct allegations to key economic institutions.

Public confidence in Ghana’s financial system is essential, CDM stated, and Dr. Asiama’s appointment sends a troubling message that political considerations outweigh ethical governance.

The group also raised concerns about the withdrawal of legal charges against him, arguing that such actions further damage the credibility of the financial sector.

“Why Is President Mahama So Keen on Bringing Him Back?”

CDM questioned President John Mahama’s insistence on reinstating Dr. Asiama when there are numerous highly qualified, competent, and unquestionable professionals available to lead the Bank of Ghana.

The organisation suggested that the appointment could be an act of political payback, raising suspicions about a deeper agenda beyond public view.

“If the President truly values Ghana’s financial credibility, why appoint someone whose past raises serious ethical questions? Ghana deserves leadership that inspires confidence, not one that fuels scepticism and controversy,” the statement read.

CDM issued a strong call to President Mahama to immediately revoke Dr. Asiama’s appointment to protect Ghana’s reputation in the international financial community.

The Movement warned that failure to act decisively would erode investor confidence and cast doubts on Ghana’s commitment to ethical governance and the rule of law.

To reinforce its stance, CDM issued the following demands:

• The immediate suspension of Dr. Asiama’s appointment until all legal and ethical concerns are addressed.
• A parliamentary inquiry into the selection process and the circumstances surrounding the withdrawal of charges against him.
• Strict adherence to constitutional and international financial governance standards in appointing future BoG Governors.

Should the government fail to take urgent action, CDM announced its intent to petition key international bodies and donor institutions, including the European Union Representative in Ghana, the International Monetary Fund (IMF), the World Bank, the Chinese Embassy, the U.S. Embassy, and other major diplomatic missions and financial institutions.

The petition will highlight the risks of unethical financial governance, the potential dangers to Ghana’s economic stability, and the likelihood of mismanagement of international financial aid.

In conclusion, CDM stressed that Ghana’s financial ecosystem must not be compromised for political expediency.

“The government must uphold ethical governance and ensure that individuals appointed to such sensitive positions are beyond reproach. Anything short of this is a betrayal of public trust,” the statement declared.

The controversy surrounding Dr. Asiama’s appointment is expected to intensify as stakeholders in Ghana’s financial sector, opposition groups, and international observers scrutinize the government’s response to the concerns raised by CDM.

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The Governor of the Bank of Ghana(BoG) Dr Ernest Addison, has ruled out the possibility of the restoration of any revoked banking licenses as long as he remains in office.

This according to him is because the move was made after thorough reviews of the affected institution’s operations.

In an interview with Joy Business, he emphasised that many of the institutions engaged in risky investments and mismanagement of depositor funds.

The mismanagement he explained breached the principles of banking.

“As long as I remain Governor, none of those licenses will be reinstated. These shareholders treated depositors’ money as their own, using it to fund personal businesses or invest in brick-and-mortar projects that were not liquid enough to make resources available when depositors needed their funds,” Dr Addison explained.

The central bank between 2017 and 2-19 as part of financial reforms revoked the licenses of nine universal banks, 347 microfinance companies, 39 microcredit companies, 23 savings and loans firms and eight finance houses.

Some institutions were also merged under the Consolidated Bank Ghana (CBG) to ensure the continuity of banking services.

After several pleas for restoration, President John Mahama ahead of the 2024 election promised to reinstate the licenses.

He explained that the restoration will be preceded by a comprehensive and unbiased assessment in his quest to stabilise the financial sector and restore public confidence.

Speaking at the Governor’s Day dinner organised by the Chartered Institute of Bankers, Dr. Addison revealed that the IMF had identified critical weaknesses in the banking system and set specific “prior actions” as prerequisites for financial assistance. Among these conditions was the dissolution of the two banks.

Against this backdrop, the appointment of the next Governor of the Bank of Ghana is arguably one of the most far-reaching decisions the president-elect will have to make.

The central bank governor must not only have the required experience and technical expertise to stabilise Ghana’s economy but also the leadership skills and vision to rebuild confidence, chart a sustainable course for restoring stability and growth, and mitigate future crises.

Understanding the Economic Context
Ghana’s current economic landscape is marked by severe financial strain, with the Bank of Ghana (BoG) at the centre of the storm.

The next central bank governor must grapple with an institution facing not only immense economic challenges but also a precarious financial position.

Among the most pressing issues include persistent and entrenched inflation which is eroding purchasing power, worsening inequality, and creating uncertainty for businesses and households.

There is also the issue of currency depreciation, which is further eroding public confidence, deterring foreign investment, and driving up the cost of imports.

Third is the issue of Ghana’s public debt crisis, which has led to unsustainable debt levels that have heavily strained fiscal resources, with the central bank compelled to provide financial support to the government in ways that have weakened its own financial standing.

The BoG reported substantial losses in its balance sheet, raising concerns about its ability to maintain monetary and financial stability.

Lastly is the erosion of confidence in the central bank which resulted from clear political interference, opaque decision-making, and unaccounted actions, such as excessive money printing to fund government expenditures.

These have undermined the BoG’s credibility both domestically and internationally.

Need for Hands-On Central Banking Expertise
Given these dire circumstances, addressing these issues requires a governor with hands-on experience in central banking and a proven track record in managing crises.

The next leader must have firsthand knowledge of the mechanics of monetary policy, forex management, financial regulation, and institutional reform.

This crisis demands more than just technical knowledge – it requires an individual capable of restoring public trust, rebuilding the BoG’s financial health, and ensuring its credibility.

A visionary leader with practical central banking expertise is essential to stabilise the economy and lay a sustainable foundation for growth.

The incoming governor will need to simultaneously tackle immediate economic pressures while restructuring the central bank’s internal operations and financial footing to regain credibility and fulfil its mandate effectively.

The new Governor must be able to implement monetary policy to achieve macroeconomic objectives such as controlling inflation, stabilising the local currency, and contributing to economic growth.

The tasks of inflation control, currency stabilisation, and managing public debt require a deep understanding of monetary policy and crisis management.

Essential Qualities and Expertise
The next governor must bring a wealth of theory, expertise and professional knowledge.

An advanced degree, ideally a PhD in economics, finance, or a related field, is highly desirable for such a role.

A PhD provides the analytical and theoretical grounding needed to manage monetary policy and address complex economic challenges. It also equips the holder with critical skills.

For example, an advanced knowledge of economic theory and modelling will be key to designing evidence-based policies and making decisions based on sound economic reasoning.

Also, a PhD lends the governor additional legitimacy, instilling confidence in both domestic and international investors and other stakeholders.

Equally critical is professional experience in economic management, central banking, or finance.

The ideal candidate should have a proven track record of handling issues such as inflation control, currency stabilisation, promoting financial stability and fostering financial inclusion.

Crisis Management and Strategic Vision
Ghana needs someone who can quickly address immediate challenges while formulating a clear, actionable long-term strategy.

Innovative thinking will also be essential. The global financial landscape is evolving rapidly, and Ghana must embrace new tools such as digital currencies, financial technologies, and green financing to remain competitive.

An effective governor must understand Ghana’s unique economic landscape, including its key sectors and vulnerabilities, while maintaining a global perspective. Familiarity with international financial institutions like the IMF and World Bank will be invaluable, especially given Ghana’s reliance on external support.

A Call for Experienced Leadership
The incoming central bank governor must not only address today’s challenges but also anticipate future ones, steering the country toward sustainable growth.

By prioritising experience, expertise, independence, and vision, the president-elect has an opportunity to appoint a governor who will play a transformative role in Ghana’s economic recovery.

In the face of crisis, the right leadership can turn adversity into opportunity, positioning Ghana for a brighter economic future.

This decision will define not just the central bank’s trajectory but the entire nation’s economic path. It must be made with the utmost care, foresight, and commitment to Ghana’s long-term prosperity.

********

The writer is a journalist and a student of Financial Market Regulation.

“These are key ingredients to ensure the country has higher growth, “ the Governor of the BoG, Dr Ernest Addison stated.

Speaking when a delegation from the E ON 3 Group and its key partners presented the Otumfuo commemorative gold coin to him, Dr Addison said the Bank was very proud to be associated with the gold coin initiative.

“I think that His Majesty deserves the honour,“ he added.

The delegation, which was led by the Executive Chairman of E ON 3 Group, Richard Adjei Mensah Ofori Atta, add the presentation on February 14, 2022.

Why gold coin

Earlier at the launch of the commemorative gold coin in Kumasi, Dr Addison explained why the Central Bank gave authorization to the E ON 3 Group to lead processes for the minting of the gold coins in honour of Otumfuo.

According to him, the BoG recognised Otumfuo’s involvement in the peaceful transition of power from different political administrations in the 4th Republic.

He said the bank also noted with keen interest the painstaking effort His Majesty put in place in the mediation of peace in the Dagbon chieftaincy conflict.

“Under the circumstances, the bank approved the issuance of a commemorative coin and offered to assist in procuring the coin through appropriate channels,” Dr Addison said.

No monetary value

The governor said the gold coin, which is of 99.99 per cent assay at 24-carat fine gold, has no monetary value, meaning it is not a medium of exchange and not exactly a legal tender.

“Your Royal Majesty, in recognition of the invaluable role and your remarkable achievements, preservation of peace in the safeguarding of life, the development of Ghana and ensuring peaceful coexistence of the citizenry of Ghana, the Bank of Ghana proudly associates itself with the commemorative gold coin,” he stated.

Historic

It was the first time in the history of Ghana that non-circulating commemorative coins meant to celebrate and honour people, places, events and institutions were issued.

The committee members include the Director General of the Ghana Education Service (GES), Dr. Eric Nkansah; the 2022 National Best Cocoa Farmer, Bismarck Fuachie; Deputy Chief Executive in charge of operations at COCOBOD, Dr. Emmanuel A. Opoku; Deputy Chief Executive in charge of finance and administration, Ray Ankrah; and Director, Legal and Solicitor Secretary at COCOBOD, Francis Opoku.

The board’s mandate is to provide essential primary educational infrastructure to benefit the children of cocoa farmers in underserved cocoa-growing regions.

Speaking at the committee’s inauguration in Accra on Monday, May 20, Dr. Addison emphasized that the committee will work diligently to make a lasting impact on cocoa farmers and their communities through education.

“I acknowledge the calibre of individuals chosen to serve with me on the trust, their collective experience and expertise will undoubtedly enrich our effort and lead us towards success.

“I have every confidence that their dedication and insights will be invaluable in advancing the goals of the trust. Having previously served as the chairman of the COCOBOD scholarship scheme for a few years now, I am deeply humbled once again to be entrusted with a leadership role, this time with the COCOBOD educational trust fund.”

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According to him, the adoption of Environmental, Social, and Governance (ESG) principles in their decision-making will help ensure that “actions taken today can pave the way for a better and sustainable tomorrow”.

Speaking at the ongoing 3i Africa Summit at the Accra International Conference Centre, the BoG boss stressed that “as stewards of responsible finance, discussions on environmental, social and governance principles are vital.”

He was optimistic that the platform will enable participants to achieve tangible policy outcomes that would enable affordable and safe instant cross-border payments.

“This will help fintech to drive Africa’s economic agenda by committing to a sound regulatory environment, advance digital public infrastructure, and finally acknowledge the role of fintech in bridging the gap between sectors including the creative arts industry,” he added.

The 3i Africa Summit, which seeks to generate greater momentum and traction for Africa’s digital finance agenda by causing finance, policy, and technology to meet at the crossroads will end on Wednesday, May 15.

It is being organized by the Bank of Ghana (BoG), with support from the Development Bank Ghana (DBG) and the Monetary Authority of Singapore (MAS) through its subsidiary, Elevandi.

Speakers expected to grace the event include the Bank of Ghana’s Dr. Ernest Addison, the Central Bank of Nigeria’s Dr. Olayemi Michael Cardoso, and the National Bank of Rwanda’s Hon. John Rwangombwa.

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According to Dr. Ernest Addison, this move will accelerate the rate of development and innovation.

He explained that, the industry’s potential largely depends on this issue and the ability for start-ups to access capital.

“…The lack of requisite Investment in African fintechs could slow the pace of innovation and scalability of solutions in achieving the desired impact of a digitized Africa,” he said.

The BoG boss made these remarks at the 3i Africa Summit held at the Accra International Conference Centre.

The event seeks to generate greater momentum and traction for Africa’s digital finance agenda by causing finance, policy and technology to meet at the crossroads.

Addressing the gathering, Dr Addison reiterated that it is crucial that sufficient capital is directed towards startups to enable them to develop credible prototypes of home-grown solutions that address inefficiencies on the African continent.

“Without sufficient capital, brilliant ideas and the prototypes of fintech startup solutions with the potential to address diverse financial service needs fail to progress to production,” Dr Addision said.

Also present at the event was Finance Minster, Dr Mohammed Amin Adam.

In his view, “for Africa to realise our development ambitions, we must all collate around an African agenda that delivers capital by leveraging public-private partnerships, venture capital, impact investing, and donor funding.

“An agenda that delivers investments in digital infrastructure, extended mobile network coverage and established broadband networks for widespread fintech adoption and financial inclusion in underserved areas,” he added on Monday, May 13.

For the next three days, the participants will benefit from a multimodal forum for policy discussions, international intellectual resource alignment, entrepreneurial pursuits and investment networking.

This is expected to foster important conversations and also strategic alliances to nurture the flourishing African digital economy and fintech sector.

The non-profit organization, whose objective is to use blockchain to unlock the world’s economic potential by making money more fluid, markets more open, and people more empowered, presented a blockchain-based fintech innovation designed to guarantee fair compensation for participants in the local creative industry, whose works are commercialised globally, and to enhance access to financing for their works (especially for upcoming creators/artists) through smart contracts.

This will address the current challenge of most industry players in Africa being locked out of the global payments ecosystem, leading to gross violations of their Intellectual Properties(IPs) and copyrights, inability to access funding opportunities for growth or worse still realise funds that are legitimately earned via commercial use of their works around the world. 

The discussion also focused on how both parties could explore piloting technology and policy innovation to enhance the IPs and copyrights administration for the benefit of local content creators. 

According to the delegation, it selection of Ghana as a potential pilot country for this innovation was on account of the Bank’s advancement in the area of central bank digital currency (the eCedi) and tokenization more broadly.  

 The Bank of Ghana and the Stellar Development Foundation both expressed their commitment to collaborate on this initiative for the long-term benefit of the creative industry, particularly the youth. 

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Rattled by unprecedented demonstrations against his tenure by Ghana’s political opposition, the governor of the Bank of Ghana described the protestors as “hooligans”.

The choice of language is uncharacteristic of Ghana’s suave and urbane leading central banker. When he was first appointed, few would have guessed that his term would see such a spectacle. Rarely, anywhere in the world, are central banks the usual target for mass protestors. And this Governor in particular came to office enjoying massive elite confidence. 

For nearly a decade, until he decamped to the African Development Bank (AfDB) in 2011, he helmed the research function for the Bank of Ghana. In this role, he highly supported Ghana’s small but committed think tank and research-oriented activist community. When our community mobilised against what we saw as lazy banking, the Governor, in his then research-led capacity at the central bank, was a source of analytical influence.

Changing Habits

Then he got into the apex role and everything changed. He began to push poorly conceived policies such as forcing massive recapitalisation requirements across the banking industry when the real challenges were poor capital adequacy owing to years of failure to deal with toxic assets and poor corporate governance. Protests, warnings, and laments went unheeded. He stopped listening to the independent policy community, treating their views with contempt. Many specialised banks catering to niche segments of the economy were forced to close down for no sensible reason. Despite the brutal weeding out of small and specialised banks, capital adequacy continues to be a problem for a quarter of Ghana’s banks. And the fruits of the failed recapitalisation program are still shedding their seeds.

Legacy Unravelling

Meanwhile, the one bold action that could have defined his legacy, the closure of insolvent banks that previous governments did not have the stomach for, has had its aftermath badly mismanaged.

Whilst, elsewhere, publicly funded bank bailouts and takeovers have yielded nice profits for the State, a thoroughly lacklustre recovery and liquidation process in Ghana has saddled the taxpayer with billions of dollars of liabilities with no prospect of getting most of the money back. The US government, for instance, has earned more than $30 billion on its bailout investments due to effective recovery management. 

After mooting costs in excess of $3.5 billion three years ago, following massive failures in the recovery & liquidation program (with a lower than 10% rate recorded in one category, for example), the Bank of Ghana stopped accounting to the public altogether. 

One should therefore not make the mistake of assuming that the $5.45 billion loss that has triggered these unprecedented protests for the removal of the governor came in a vacuum. The disaffection has been brewing for a while. Judging from the history of missteps outlined above, one should also be inclined to take the central bank’s loud protests of innocence with a massive sack of salt.

Here is the case for the prosecution.

First, let’s get this out of the way: a central bank can indeed make losses, and many routinely do. As far back as 1993, the IMF’s Alfredo Leone did a fine paper cataloguing the possible sources and ramifications of central banking losses.

What has caused a ruckus in Ghana is thus not the mere fact of lossmaking, but rather the scale of it, the causes, and the surrounding sleaze. 

Sheer scale of the Loss

The Bank of Ghana’s declared losses for 2022 are on the order of 8% of Ghana’s entire GDP. As the array of charts below from the OECD (Ono & Pina, 2023) shows, the size of the loss in Ghana’s case is truly phenomenal.

Bank of Ghana lied blatantly about peer comparisons

What is worse, the Ghanaian central bank, to further absolve itself of all blame, proceeded to publish a table attempting to underplay how bad its losses were in comparison with peers elsewhere. It comically inflated the losses of the Dutch central bank from 1% of GDP to 11% in order to mask its own unprecedented challenges.

But comparing it to GDP does not do full justice to the stupendous scope of the mess. When compared to the total equity of the Bank of Ghana (BoG) in the previous year, the resulting ratio is nearly 1200%. This is eye-popping from a historical point of view. For instance, a chronicle of historically significant central bank loss incidents by economists John Dalton and Claudia Dziobek (2005) from the 1990s produces a comparative average of just 35% (compared with BoG’s 1200%, that is).

The causes according to the Bank of Ghana

The BoG has listed four main causes for the loss: 

• A 50% haircut on its holding of government debt
• Exchange rate losses
• Increases in operational expenses
• Interest expense on monetary policy operations

Of these four reasons, only the last can be adduced to support the BoG’s innocence, but it accounts for only 6% of the losses. The three other causes stem from underlying problems for which the BoG cannot in any way escape blame.

Impact of the Debt Restructuring Program

A truly independent central bank would not have been left holding the can in the way that the BoG was exposed during Ghana’s disorganised domestic debt restructuring process (DDEP/DDR).

As the IMF itself has warned, central banks should shield their credibility when participating in domestic debt restructurings.

Every serious central bank is thus careful not to allow itself to be used for political convenience by the fiscal authorities (the central government) when they spend their way into a ditch. 

In Greece, during that country’s 2012 debt restructuring episode, the central bank cleverly demanded that important state assets be pledged onto their books in order both to maintain balance sheet integrity and to keep the politicians honest. 

In Barbados, a central bank recapitalisation plan was built right into the domestic debt restructuring program. 

That is why during the heady days of the Greek debt crisis in 2012, the country’s central bank actually turned a profit (see detailed extract from the relevant annual report).

In short, the BoG, by being too cosy with the politicians, by lacking a serious negotiating spine, by failing to show tough love to the fiscal administrators, and by sheer cluelessness of the political economy of Ghana, has seriously damaged its reputation by destroying its balance sheet.

Why the massive debt holdings in the first place?

And how come the BoG was holding so much government paper in the first place? It claims that this was because prudent investors didn’t want to buy government debt beyond a certain limit, yet the government was determined to live above its means, so the BoG had to step in, like a daft dealer with a soft spot for a junkie. 

Hence, in 2022, the year in which the loss was recorded, BoG alone was responsible for more than 40% of all banking sector lending to the government. Or, at least, for the outstanding stock of the sector’s debt to government.

But this is not telling the full story. Between September and December ending of the same year, the BoG doubled its holdings, according to interviews given by its Head of Research. Let that sink in: in the course of just three months, BoG printed or conjured nearly 40 billion Ghana Cedis (GHS) or ~$4 billion to protect the government from the need to kick its habit of overspending.

Compare this situation with that of one of Ghana’s closest peers, Kenya, where the central bank held just 2% of government debt (versus 46%+ held by the private banking sector).

The loose quasi-fiscal behaviour is part of a pattern

Perhaps, Ghanaians would have been less infuriated had the BoG’s crimes been limited to these technical and wonkish infractions. But imagine their alarm when it then also emerged that the central bank has been engaged in dodgy procurement and reckless overspending on itself; and was, in addition, dishing out lavish packages to its Board of Directors.

The $250 million Headquarters project

A cynic once said that, “how you do anything is how you do everything”. Those inclined to cut BoG some slack for the losses stemming from its reckless lending to the central government have to face the shambolic project management that has seen costs of its new headquarters balloon by nearly 300% at design stage.

Documents from the procurement regulatory authorities show that even before construction could take off, approved estimates shot up from ~$80 million to more than ~$200 million. Now that the construction rate is at roughly 40%, total cost projection is between $250 million and $300 million. In fact, cost and time overrun models suggest that cost variations worsen during actual construction, so the total cost may well hit $500 million. 

These cost overruns are far above the medians recorded in Ghana and the region by experts, as shown below.

The 300% to 500% cost overrun numbers emanating from the BoG’s headquarters project (compared to median rates of 75% in Ghana) illustrate a general pattern of disregard for prudent financial management.

This is on top of the fact that the BoG has revised designs to remove the high-value features such as the state-of-the-art data center, currency processing system, and integrated security management system.

In its defence, the BoG has provided benchmarking data from the Africa Property & Construction Cost Guide.

But its computations are highly misleading because it has used the average costing for “prestige office high rise” for the entire project scope when, in actual fact, 60% of the gross project area is covered by other elements such as a multi-storey car park.

Properly weighting the different components of the project yields a per meter square cost for the project that deviates from the benchmarking guidance by nearly 70%.

On top of all this, the BoG chose to use restrictive tendering on national security grounds when none of the qualified vendors has any special national security clearances that set it apart from any of the 100 or so contractors in Ghana that would have qualified to place bids in a truly transparent and merit-driven process.

A Pattern of Procurement Abuse

The BoG’s spending inefficiencies are revealed through a record of poor and sleazy procurement decisions.

The BoG has invested, and continues to invest, in a raft of ventures, ranging from hospitality facilities to medical installations. In many of these cases, the procurement practice is far from transparent, and rarely is it ever above board.

For example, a number of contracts for multimillion dollar hotel facilities have been awarded without competitive tender.

In one particularly egregious instance, a contract already awarded to a company called, Maripoma, was stripped off and awarded without competitive tender to a favourite, DeSimone, which has also benefitted from non-competitive invitations to bid and actual contracts in the Bog headquarters and national cathedral episodes, respectively.

The national security arguments ring completely hollow not just because the corporate favourites that win these awards have no special national security clearances over and above those that are denied the opportunity, but also because we see a shift in favourite contractors whenever new governors come to office. Furthermore, contractors excluded from bidding on national security grounds by one public agency often undertake work of similar scope awarded by other agencies, sometimes even under the same dubious national security pretences. 

Lastly, and perhaps worse of all, the Bank of Ghana routinely buy ordinary items, like Toyota vehicles, to the tune of millions of dollars using the same restrictive tendering and single-sourcing approaches.

Per this author’s calculations, more than 90% of routine procurement in the last few years at the BoG bypassed competitive tendering or otherwise fell short of standards.

What is sad is that it wasn’t always like this. Under some previous administrations, the BoG regularly resorted to competitive tender for most of its procurement needs.

Board largesse

Perhaps, one reason why the management of the Bank of Ghana hasn’t been reined in despite all the profusive abuse of procurement standards, lavish overspending, and reckless quasi-fiscal behavior, is the shrewd distribution of lavish treats to the BoG’s board members.

For example, consider that the entire annual cost to Barbados for maintaining its central bank board is $60,000.

In Ghana, the equivalent spending is close to $800,000. The cost of upkeep of the BoG’s board is more than 300% higher than that of the Central Bank of Kenya’s.

“Board capture” through treats and perks is a well-known tool used by some corporate management for suppressing true oversight and fiduciary controls.

The sum of it all

It should be evident from all the above that the reasons given by the Bank of Ghana to absolve itself of all blame in the current controversy are hollow. The stiff-necked refusal to accept the need for serious policy and corporate governance reforms at this very sensitive institution, whilst reminiscent of the general posture of the current political administration, does not become such a critical institution.

If the governor does not change the approach to engaging with critics and the public, show signs of genuine listening, and commit to a transformative program to rebuild trust, his term is likely to go down in history as the worst Ghana has ever seen. Which would be a real shame, given the hopes he inspired when he was first appointed.

The action, according to the lawmaker, is to demand a probe over the contracts awarded for the construction of the Central Bank’s $250 million new head office.

In a letter dated October 2, 2023, addressed to Dr Addison, Mr Ayariga stated that the leadership of the Bank has refused to make public the contract for project, hence his next move.

“I write to inform you that I will refer you and your deputies to the Office of the Special Prosecutor for investigation and possible prosecution. This is in relation to the matter of the award of a contract for the construction of a new head office building for the Bank of Ghana.

“I suspect that your team, in collusion with the contractors, overpriced the project with a possible view to obtaining personal gain. I reject your use of “national security considerations” as a reason to refuse to answer my questions properly. My decision to report you is in view of your refusal to provide a proper response to my request for information pursuant to the Right to Information Request,” portions of the MP’s letter read.

Mr. Ayariga has vowed to pursue the BoG Governor until he comes clean on the contract awarded to Messrs. Goldkey Properties Limited.

Meanwhile, the Minority in Parliament, the National Democratic Congress (NDC) and other civil society organisations (CSOs) will stage a demo against the BoG on Tuesday October 3, 2023 over alleged mismanagement which led to the loss of GH¢60 billion.

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Read Mahama Ayariga’s full letter below:

Dr Addison was accompanied by a delegation, including the First Deputy Governor, Dr Maxwell Opoku-Afari.

The rest were board members, including Dr Samuel Nii-Noi Ashong, Andrew Boye-Doe, and Joseph Alhassan.

The others are the BoG Secretary, Sandra Thompson, and the Head of Security, Wg Cdr Kwame Asare Boateng.

The delegation presented items such as customary drinks, assorted soft drinks, bottles of water, and a cheque to support the funeral preparations.

Dr Addison, in a brief remark, pledged the support of the bank towards the funeral preparations of the late Ga Manye.

“I am very happy to be here. The demise of the late Ga Manye is a matter of concern to us all. The Bank of Ghana will lend its support for a befitting burial for the late Ga Manye. We are grateful for your warm reception,” he said.

Miss Thompson also extended the Central Bank’s condolences while highlighting the cordial relationship between the Ga State and the BoG.

She further underscored the role the bank has been playing in supporting the Ga State, adding that it will continue to support areas such as education.

“The Bank of Ghana and the Accra Metropolitan Assembly is currently collaborating to build a three-storey 18-unit classroom block and a three-unit nursery block with ancillary facilities for the Independence Avenue 2 Cluster of Schools, a project which we hope to complete by the end of this year,” Sandra Thompson indicated.

The BoG delegation was warmly received by the Ga Mantse, King Tackie Teiko Tsuru II together with other traditional leaders in the Ga State.

King Tackie Teiko Tsuru II, in a brief remark, also expressed his heartfelt gratitude to the Governor and management of the bank while also urging them to remain focused on discharging their mandate.

“There are lots of challenges in Ghana, but I entreat you to work diligently to deliver on your mandate. Don’t be discouraged. It is not everything you do which will please people, but then be focused and remain steadfast” Ga Mantse added.

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Mr Domelovo insisted that they leave office to restore confidence in the economy of Ghana.

“The Minister of Finance, he should go. The economy is in trouble. And when I saw a group of members of parliament asking for his dismissal, I thought it should be done. Yes, at least to give confidence to the system that, look, we are serious; we want to get people who should go, but he is still there,” he said in an interview on JoyNews’ Upfront.

The former Auditor General explained that, his demand is not motivated by personal animosity towards the people in question, but rather because, in such circumstances, “you must make changes to give confidence to the system.”

Both the Finance Minister and the BoG governor have come under massive criticism and pressure for their mismanagement of the economy with many demanding their removal.

The leading opposition, the National Democratic Congress (NDC) also intends to picket at the premises of the BoG, in response to the government’s failure to terminate the employment of Mr Addison and his deputies after it was revealed that the central bank lost GH₵60.8 billion in the fiscal year 2022.

Furthermore, Mr Domelevo downplayed President Akufo Addo’s self-assessment of his fight against corruption.

He stated that he did not believe the president has been very “objective” and “sincere” with Ghanaians in his quest to fight corruption.

According to Mr Domelovo, President Akufo-Addo is often seen as preempting investigations.

“Remember all these investigative machinery are under the president. No matter how independent you are, we have some respect for the presidency.”

He further quizzed, “If the first man, the first gentleman of the state is already taking sides or maybe expecting that nothing should happen, then are you surprised if nothing happens?”

The postponement is due to a scheduled court hearing for an injunction filed by the Ghana Police Service on Wednesday, August 30, against the protest march.

Slated for Tuesday, September 5, the group had sought to march from makola, through Rawlings Park and Opera Square to the frontage of the Bank of Ghana head office in Accra.

However, the police argued that the area is often overcrowded with human and vehicular traffic and thus going by that route could distort public order, safety and the running of essential services.

Instead, the police had proposed an alternative route starting from Parliament House through the Osu Cemetery Traffic Light to end at Independence Square, which the minority rejected.

In court on Friday, the MPs, under the leadership of NDC’s Director of Legal Affairs, Godwin Edudzi Tamakloe, stressed that the police did not have the right to propose alternative routes for the group.  

Lawyer Tamakloe told the court that according to Article 88(5) of the 1992 Constitution and the State Proceedings Act, only the Attorney General has the authority to institute such actions.

The court subsequently set Friday, September 8, to rule on the Greater Accra Regional Police Command’s injunction application.

In view of this, the Minority has suspended the march until after the ruling.

Minority Leader Dr. Cassiel Ato Forson has reassured supporters that the protest will proceed once the court delivers its verdict. 

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The Minority has accused the governor of failing to exercise monetary discipline in his dealings with the Finance Minister leading to the central bank accruing a GH¢60.8 billion loss in 2022.

According to Martin Kpebu the Minority’s decision to go on a protest is long overdue, and welcome news.

Actually, the Minority has slept for too long. Because the whole of last year, apart from the Arise Ghana demonstration and then my demonstration, the Minority didn’t do much. It was so painful. It looked like they had no balls. But if now they’re getting up, yeah, half a loaf is better than none.”

He said the action is necessary as Dr. Ernest Addison has lost the plot.

Describing the governor as incompetent, he noted that it was about time he was ousted for failing to ensure fiscal discipline.

“So what the Minority is doing is what we have to do as citizens, because look, Governor Addison has lost the plot. He’s very, very incompetent. Addison’s problem is like the way Wampah was under their (NDC) regime. Addison and Wampah belong to one basket,” he said.

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In a tweet, he was baffled why the governor of the Central Bank has refused to disclose the cost of the land where the new headquarters is being built in Accra.

“Governor, Why is he embarrassed to publicly disclose the latest cost of his gravely insensitive, sleazy & majestic head office which is an astonishing US$ 222.79 million (excluding land cost)? Why is he refusing to resign?” Ablakwa tweeted.

The legislator in an earlier tweet on August 17 stated that the new BoG headquarters cost was “initially US$81.8million, suddenly escalating to US$121million & currently threatening to exceed US$250million.”

He has, therefore, called for the immediate suspension of the project.

Addressing the media on August 21, 2023, Dr Addison said that the Central Bank followed all procurement processes in the country and did not breach any law in purchasing the land for the new project.

He also explained that processes for the new head office commenced in the 1990s, discrediting arguments that the bank was investing in such a project at a time the country was in financial difficulties.

The Minority in Parliament at a press conference on August 8, disclosed the cost of the central bank’s new head office under construction. 

Leader of the caucus, Dr Cassiel Ato Forson, said the bank spending a whopping 250 million dollars to build a head office in the current economic crisis was untenable. 

It has, thus, demanded the resignation of the BoG Governor and his two deputies for the GHS60 billion loss the bank incurred in 2022.

But the Governor explained that the losses were not occasioned by mismanagement but largely by the government through its initiatives like the Domestic Debt Exchange Programme (DDEP) and other factors.

Below is his tweet:

My response to the MisGovernor

Why is he embarrassed to publicly disclose the latest cost of his gravely insensitive, sleazy & majestic head office which is an astonishing US$222.79million (excluding land cost)?

Why is he refusing to resign?#OccupyBoGProtest#AddisonMustGo pic.twitter.com/Gy85vYaE0F

— Sam Okudzeto Ablakwa (@S_OkudzetoAblak) August 22, 2023

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He says the country has to move away from the trend where either of the two parties only acknowledge wrongdoing when they’re in opposition and not in government.

Speaking on Joy News’ AM Show, the Deputy Minister said Ghana needs a new paradigm shift that will make leaders agree to common practices and accept realities when it comes to certain situations and circumstances.

“And for my brothers in NDC, what they’re doing, NPP would’ve done same and I think we need to advise the two parties, enough is enough of what NDC and NPP will do when one is in government.

“We should have a new paradigm shift that can let us accept common practices and the reality when it comes to policies and some of these issues,” he explained.

According to him, the report released by the Bank of Ghana does not suggest wrongdoing on their part if one really understands the technicalities of financial issues.

He said until a thorough probe shows any culpability on the part of the central bank, one cannot fault them beyond what their report has revealed.

“In the first place, the concerns they’re raising seek the exposure of BoG, and they’ve come out to explain and anybody that really understands those things technically will know.”

“Unless you go deeper and further to come out with your own materiality and other pieces of information that will let BoG’s explanation for the exposure or the negative equity to be false, these are the honest analyses,” he said.

He added that this loss is not one that happened overnight, adding that it is an accumulation over the years, and the minority NDC has to be honest with Ghanaians on that.

“These are honest analyses we should all make in this context.”

“BoG even came out to say that all these issues did not just happen today, it’s an accumulated issue that has been going on for so many years,” Dr Amoah said.

The Deputy Minister, who doubles as the Member of Parliament for Nyhiaeso in the Ashanti Region, also said that there are three factors or conditions that could result in the suspension of fiscal policies and rules and one of them is a health pandemic.

He mentioned that during these inevitable conditions that pose danger to human lives, certain risks and decisions are taken, and that is a fact the minority already knows.

“One of them is war, second one is natural disaster, and the third one is health pandemic and this is a fact, so you cannot compare peace times to war times in terms of control.”

“If your child has a convulsion, the time that the child has to be taken to the hospital, I don’t think that’s the time you’ll go through the regular route, even if the family’s policies are to take the child to Komfo Anokye Teaching Hospital or first go a see a church elder, you don’t do that.”

“You take resuscitation measures, so let us analyse these things in a certain context and advise appropriately,” he explained.

The National Democratic Congress (NDC) on Tuesday, August 8, 2023, in a press conference criticized the Governor of the Bank of Ghana (BoG), Dr Ernest Addison for his poor management and reckless decisions in the financial sector of the country.

The NDC thus called on the Governor and his Deputies to resign within 21 days starting from Tuesday, August 8, 2023.

The party is determined to picket the Central Bank if the Governor decides not to resign within the given number of days.

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The Bank’s financial statement for last year shows more than 60 billion cedis in losses which the Minority and the NDC put to the governor’s incompetence.

Speaking at a news conference, Minority Leader Dr Cassiel Ato Forson announced that if the Bank of Ghana governor and his deputies do not resign, they will mobilise concerned Ghanaians to occupy the Central Bank.

“In this regard, we call for the resignation of the Governor of the Central Bank and his deputies within 21 days from today. We are resolved to embark on popular action to occupy the Central Bank and drive out the team of inept, callous and criminal mismanagers of the finances of this country and save the Bank of Ghana. The March to Ensure Accountability will begin in 21 days if the Governor of the Bank of Ghana does not do the needful and pack bag and baggage out of that sacred institution that he has so desecrated. Dr Ernest Addisson Must Go! There has to be an end to impunity and it is NOW!”

“This means the recklessness and mismanagement of the Governor of the Bank of Ghana has cost the nation twice what we are struggling and sacrificing to receive from the IMF amid major conditionalities”.

According to the party, the BoG has become a crime scene, with its managers treading on a dangerous trajectory.

“The NDC is on record to have informed Ghanaians on countless occasions that the Bank of Ghana has been on a dangerous trajectory, and indeed, it has now become a crime scene with dire consequences for all of us. Beyond the mismanagement of the economy and our finances, the spectacular recklessness and ineptitude of the Governor and his team has called into question the wisdom of leaving him at the helm of affairs of the Central Bank”.

The NDC further accused the BoG of spending GHS97.4 million on foreign travels.

“Similarly, foreign and domestic travels of the Bank of Ghana cost the Ghanaian tax payer a staggering
GHS97.4 million, which is about 246% increase over the previous year.”

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According to him, this has become necessary due to the economic challenges, which many banks are being affected.

This has led to high cost of borrowing and doing business in the country.

Speaking at the Annual Bankers Dinner in Accra which is part of the Bankers Weeks celebration by the Chartered Institute of Bankers Ghana, Dr Addison said the proposed debt exchange programme by government is an important move that will help strengthen the banking sector in the midst of the economic challenges.

“To guarantee debt sustainability over the medium term, a debt exchange operation is proposed to be undertaken to support the consolidation agenda.

‘I think that the information provided should give us a broad level of confidence that the fiscal measures, as well as the debt operations, will help us foster confidence, improve our debt metrics and complement what we have been doing in the monetary policy to bring down pressures in the pricing levels”.

The annual event forms part of a platform for bankers to engage and take stock of happenings in the industry for the year and forge ahead.

As the Guest of Honour, the Governor of the Central Bank, also said the banking sector lost some reserves as a result of some pressures on the local currency, hence the decision to introduce the domestic gold buying policy.

President of the Chartered Institute of Bankers, Benjamin Amenumey, expressed worry over the high cost of doing business by banks and the country and hinted that members are adopting new measures to overcome the challenge.

He hinted that the Chartered Institute of Bankers, Ghana will launch a book to capture happenings in the industry for the past 60 years since its establishment.

“I am very pleased to announce that 2023 marks the 60th anniversary of Chartered Institute of Bankers, Ghana.

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“As part of the activities to commemorate the existence of the Institute, we are developing a book to capture and preserve the story of the evolution of the Institute from its inception to date.

“This will give us the opportunity to acknowledge the great foundation laid by our predecessors and the tremendous milestones chalked by the various administrations to raise the visibility and reputation of the Institute to its current level,” he said.

According to the Deputy Ranking Member on the Finance Committee, Isaac Adongo, Dr Addison has been incompetent in his handling of the cedi’s depreciation and inflation.

He added that “the Governor of the Bank of Ghana, since he assumed office has borrowed in excess of 7 billion dollars on the balance sheet of BoG and thrown those dollars at the cedi.

“Today, Dr Addison is in trouble to find the dollars to go and pay those loans. Some he called break finance, some he called swaps, some he called repurchased agreement. Today, Dr Addison is in the market looking for dollars to pay up for his own mess; that is the problem.

“How can Dr Addison still be the Governor of the Central Bank? I call on Dr Addison, as a matter of urgency, to exit that office and give Ghana the chance to clear the mess that he has created …Dr Addison must be sacked. Otherwise, he must have the conscience to resign as the Governor of the Central Bank,” he said while addressing the media on Tuesday.

Mr Adongo also claimed that the government has borrowed more than 70 billion Ghana cedis illegally from the Central Bank which he says is a contributory factor to the cedi’s abysmal performance.

He noted that there are strict rules on how the Government of Ghana can borrow from the Bank of Ghana, adding that due to these rules, the “Bank of Ghana should not have lent more than five percent of the previous revenue cumulatively to the government.”

“Dr Addison has been financing government and paying maturing debt obligations on the domestic market that the government cannot fund. We are currently looking at something in excess of 70 billion dollars of illegal borrowing by Government of Ghana through the Bank of Ghana.”

He said that the consistent increase in policy rate is as a result of Dr Addison’s attempt to recover those GH₵70 billion to the banking sector back to the Bank of Ghana.

The demonstration to be led by New Patriotic Party (NPP) Bono Regional Chairman, Kwame Baffoe Abronye, is in protest against the cedi depreciation.

In a statement, the group indicated the action is in line with the core objective of PaFFAG as a registered Civil Society Organisation (CSO) to ensure public office holders are held accountable for their legal duties and functions.

Admitting external shocks might have contributed to the phenomenon, the group stated “the BoG Governor has failed to ensure strict and practical mechanisms to arrest the free fall of the cedi against major trading currencies, especially the US dollar.”

To them, they cannot sit unconcerned as citizens and pretend as if nothing is happening, adding heads must roll and the first head should be that of Dr Addison.

“Dr Addison’s failure to stabilise the cedi is a depiction of either his incompetence on the job or that, he has been overwhelmed by circumstances surrounding the cedi and hence must be relieved of his duty in order to make way for fresh minds to help stabilise the cedi.

“In the prevailing circumstances, as a CSO we believe the BoG Governor has failed the President and the people of Ghana and therefore we shall be embarking on three different demonstrations starting with a mega demonstration in Accra to register our dissatisfaction with the performance of the BoG Governor and further call for his removal or resignation,” the statement added.

Meanwhile, the group says deliberations have commenced with the relevant stakeholders including the Police to ensure a smooth process.

Due dates and routes will, therefore, be communicated within the shortest possible time.