Dr Asiama – Adomonline.com

BoG moves to block remittance leakages to stabilise cedi

Joseph Odotei — Thu, 05 Jun 2025 10:47:15 +0000

As part of measures to stabilise the cedi, the Bank of Ghana (BoG) has initiated plans to tighten controls and block all leakages in remittance inflows.

The central bank believes this move will help curb the hoarding of foreign currencies, particularly the dollar, and discourage speculative activities.

Addressing members of the Association of Ghana Industries (AGI), the Governor of the Bank of Ghana, Dr. Johnson Asiama, stressed the need for a renewed mindset regarding the cedi. He called on businesses to support the BoG in efforts to close loopholes in the remittances sector.

“Our objective is to ensure that every dollar that is remitted is made to count,” he stated.

Dr. Asiama disclosed that the BoG will soon roll out several measures to sanitise and monitor the remittances sector to ensure proper accounting of foreign currency inflows.

“I wouldn’t go into details about the platforms we intend to put in place, but our objective is to ensure that every dollar that is remitted is properly channelled into the economy,” he added.

On efforts to boost Ghana’s gold reserves, Dr. Asiama described the GoldBod initiative as a strategic step that will continue to shield the cedi from external shocks.

“I’m beginning to see those two things play out,” he said, referring to reforms in the remittances space and the establishment of GoldBod.

He reiterated that the BoG’s drive to stabilise the cedi is expected to positively impact the economy by reducing inflation and fostering growth. By addressing leakages in the gold and remittances sectors, the central bank aims to ease pressure on the cedi and promote stability in the foreign exchange market.

Dr. Asiama affirmed the BoG’s commitment to ensuring the cedi remains stable and competitive, supporting both businesses and individuals.

Concerns Over Remittances

In 2024, banking consultant Dr. Richmond Akwasi Atuahene raised concerns about fintech companies operating in Ghana’s remittance sector, calling for stricter oversight.

He pointed to discrepancies in reported figures and their potential impact on Ghana’s foreign exchange reserves.

Dr. Atuahene urged the BoG to commission international audit firms to conduct forensic audits on all fintech companies, retroactive to 2019. He also suggested that the Ministry of Finance and the BoG ensure fintech firms reimburse BoG Nostro accounts or authorised dealer banks with all foreign exchange components derived from international remittances.

“Foreign exchange from inward remittances can help reduce the current account deficit and stabilise the local currency against major trading currencies,” he noted.

To strengthen oversight, he proposed that BoG acquire digital tools to monitor all inward remittances. “The Bank of Ghana must acquire software that can be linked with the fintech companies’ digital apps to track, trace, and capture all inward remittances,” he said, proposing a middleware platform using APIs and Ethernet-APL technology.

These recommendations come amid growing concerns about discrepancies between World Bank remittance data and figures from authorised dealer banks in Ghana.

“The central bank has consistently failed to address the gap between World Bank data on inward remittances and that of the 23 authorised dealer banks for the period between 2019 and 2023,” Dr. Atuahene said.

Citing the BoG’s 2023 Annual Report, he questioned the fate of significant remittance inflows: “The Governor reported that fintech companies received GH¢22 billion (US$3 billion) in 2022 and GH¢57 billion (US$5 billion) in 2023. Where were these foreign exchanges held?”

While the BoG has denied claims of losing US$8 billion through inward remittances, it acknowledged a shortfall, indicating that newly licensed money transfer operators (MTOs) and fintech companies have withheld approximately US$8 billion over the past two years.

Dr. Atuahene also called for enhancements to the international remittance data framework, urging both the BoG and the International Monetary Fund (IMF) to improve their BPM6 and RCG frameworks to better reflect the evolving nature of the remittance sector.

Economic activity picking up – Bank of Ghana Governor tells CEOs

Faridatu Seidu — Mon, 26 May 2025 14:28:02 +0000

Governor of the Bank of Ghana, Dr. Johnson Asiama, has announced that Ghana’s economic indicators point to a rebound in activity, driven largely by strong exports, increased private sector credit, and a surge in construction.

Speaking at the 9th Ghana CEO Summit and Expo, Dr. Asiama stated that the economic outlook remains strong, supported by key metrics such as the Ghana Purchasing Managers’ Index, which recently crossed the 50-point benchmark. “This shows that output and new orders are rising, signalling improved growth prospects,” he noted.

Delivering his keynote address on “Monetary Policy, Financial Stability and Innovation: Anchoring Ghana’s Economic Reset for Sustainable Growth”, the Governor highlighted a renewed sense of optimism across the economy.

“Our latest confidence survey shows the highest levels in seven years, driven by easing inflationary pressures and positive macroeconomic expectations,” he revealed.

Cedi Strength Not Artificial – Governor

Touching on the stability of the Ghanaian cedi, Dr. Asiama dispelled speculation that the Bank is propping up the currency using its international reserves.

“The strengthening of the currency reflects a blend of disciplined monetary policy, tailored FX auction reforms, enhanced remittance channels, and stricter market surveillance – not mere short-term interventions,” he clarified.

He also announced that effective June 5, 2025, the Cash Reserve Ratio requirement will be reviewed to better align foreign exchange risk and improve liquidity planning.

Vigilance Amid Global Risks

Dr. Asiama cautioned that despite gains, Ghana remains exposed to external risks. “We remain alert to vulnerabilities – including disinflation divergence in global financial markets and the proposed 5% U.S. tax on outbound remittances,” he warned.

Proposed BoG–CEO Forum

To enhance policy collaboration and responsiveness, the Governor proposed the establishment of a Bank of Ghana–CEO Forum to foster dialogue and gather market intelligence.

“This is not about co-authoring policy, but about ensuring that our decisions are informed by a grounded understanding of how they affect investment, credit, and enterprise,” he said, drawing parallels with regional CEO councils used by the U.S. Federal Reserve.

Governor’s Vision for the Sector

Dr. Asiama also shared six key priorities for the banking sector:

A modern, transparent, and predictive monetary policy framework
A credible foreign exchange market anchored in sound reserves and reduced volatility
Strengthened regulation for a stable and responsive banking system
Innovation and inclusion through fintech and digital finance
Better alignment between monetary and fiscal policy without undermining central bank independence
Restoration of the Bank’s balance sheet to preserve institutional credibility

“These priorities reflect not just institutional responsibility, but the demands of our time,” the Governor concluded.

Source: Adomonline

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BoG reviews monetary policy framework to boost economic stability

Faridatu Seidu — Wed, 21 May 2025 14:07:18 +0000

The Bank of Ghana has begun a comprehensive review of its monetary policy implementation framework.

Governor Dr. Johnson Asiama explained that the central bank is shifting away from reliance on the unremunerated Cash Reserve Ratio (CRR) towards a more active Open Market Operations (OMO) regime, including the introduction of longer-tenor BoG instruments.

This shift aims to enhance policy transmission, improve liquidity management, and create greater room for credit expansion to the private sector.

Speaking ahead of the three-day Monetary Policy Committee (MPC) meeting, the Governor highlighted the need for the committee to carefully assess whether the current monetary policy stance remains adequate to drive disinflation without undermining the fragile growth momentum.

Key considerations, he said, include whether the observed exchange rate appreciation is sustainable, how durable the nascent return of market confidence is, and the implications of these dynamics for medium-term inflation forecasts.

“I must also emphasise the critical role of our post-meeting communiqué. It must clearly articulate the rationale behind our policy decisions and provide an accessible, transparent account of recent economic trends. This is essential for anchoring expectations and sustaining public trust in our commitment to price stability,” he stated.

He urged the committee members to approach the meeting with professionalism, rigour, and independence, noting, “Our credibility depends on our ability to respond decisively and proportionately to evolving economic realities.”

With these remarks, Dr. Asiama formally declared the 124th meeting of the Monetary Policy Committee open.

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Bank of Ghana governor urges prudence in lending rate adjustments

Joseph Odotei — Thu, 10 Apr 2025 10:43:19 +0000

The Bank of Ghana Governor, Dr. Johnson Asiama, has urged commercial banks to exercise caution and transparency when adjusting their lending rates following the recent increase in the policy rate.

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

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

Background

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

Justification

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

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

Post-Policy Rate Hike Concerns

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

Outlook and Challenges

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

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

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

BoG Governor pledges to restore financial strength amid economic challenges

Joseph Odotei — Thu, 13 Mar 2025 15:35:12 +0000

The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has committed to restoring the financial strength of the central bank, assuring that the Board of Directors will work diligently to rebuild confidence and uphold the bank’s integrity.

This pledge comes after Finance Minister Dr. Ato Forson revealed in the 2025 Budget presentation that the BoG requires GH₵53 billion in bailout funds to address its negative equity position.

Dr. Forson recommended that the BoG explore internal cost-cutting measures rather than relying on taxpayer funds.

In his statement at the inauguration of the new Board of Directors on March 13, 2025, Dr. Asiama stressed that the bank will implement strategic measures to reduce inflation and strengthen its financial position. He stated, “Our mission is clear: we must restore confidence in the Bank of Ghana, uphold price stability, strengthen our financial position, and reinforce good governance.”

The Governor highlighted the board’s composition of esteemed professionals with vast expertise, promising that the board would resolve the bank’s challenges with boldness, integrity, and accountability. He acknowledged the current economic challenges, including macroeconomic instability, rising inflation, currency volatility, and fiscal constraints, and emphasized the urgent need for strategic action.

Dr. Asiama noted that the board’s decisions would have a significant impact on the future of the bank, businesses, households, and the economy at large. “This morning’s inauguration provides us an opportunity to reaffirm our commitment to excellence, transparency, and independence in our monetary and financial policies,” he added.

Vice President Prof. Naana Jane Opoku-Agyemang, who chaired the swearing-in ceremony, urged the Board to align its activities with the government’s economic agenda and restore public trust in the financial sector. She emphasized that the success of the government heavily depends on the performance of the central bank.

“The President’s social contract with the people of Ghana to reset, rebuild, and restore public trust and macro-economic stability rests on your shoulders, in equal measure with the Cabinet, the Minister for Finance, and all other key stakeholders,” she stated.

Prof. Opoku-Agyemang also called for good corporate governance, urging the board to ensure that existing policies align with contemporary standards and the government’s social contract with the people. She concluded, “I urge you to examine the existing policies of the bank to ensure that they are aligned with leading contemporary policies and government’s economic agenda.”

‘The old Bank of Ghana HQ lacked structural integrity’ – BoG Governor

Faridatu Seidu — Wed, 05 Mar 2025 13:54:45 +0000

The Governor of the Bank of Ghana, Dr. Johnson Asiama, has stated that the old headquarters of the central bank lacked structural integrity, making the construction of a new facility necessary.

In his appearance before Parliament to address questions about the new headquarters, Dr. Asiama explained that discussions about the need for a new building began as far back as 2011.

During that time, the board considered acquiring land for the project, but no specific location was chosen before the board’s tenure ended.

“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 said.

Dr. Asiama further revealed that a structural integrity audit was conducted on the existing headquarters in 2019, under a new board. The findings showed that the building, constructed in the late 1950s, had significant defects and was no longer fit for purpose.

“The existing headquarters had developed significant structural defects and was no longer fit for purpose,” he emphasized.

Despite concerns about the necessity and cost of the new building, Dr. Asiama defended the decision, asserting that expert assessments highlighted the need for a modern, structurally sound facility to ensure the effective operation of the central bank.

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uniBank saga: AG makes case against Duffuor, Asiama, others

Joshua Tigo — Wed, 12 Feb 2020 20:15:47 +0000

Attorney-General Gloria Akuffo has presented in court her case against Dr Kwabena Duffuor and eight others over the collapse of uniBank.

Read details of document below:

Dr Asiama not on the run, ready and willing to aid investigators – Lawyers say

Joshua Tigo — Sat, 25 Jan 2020 16:00:39 +0000

Lawyers to former Deputy Governor of the Central Bank , Dr Johnson Asiama, has debunked reports of their client being on the run and expressed his willingness to assist with investigations over his involvement in the collapse of uniBank.

A report by a national newspaper the Daily Statesman, confirmed by the police revealed Dr Kwabena Duffuor Snr, founder of defunct bank UniBank, Dr Kwabena Duffuor Jnr CEO of uniBank and former Deputy Governor of Bank of Ghana Dr Johnson Asiama, for the past three weeks have been on the run from investigators on their involvement in the folding up of the bank.

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But, reacting to the claims, lawyers of Dr Asiama on Saturday, in a text message to Joy News’ Newsfile host Samson Lardi Anyenini, said their client Dr Asiamah is not avoiding the police, neither is he on the run as reported by some media houses.

He that, the former Deputy Governor of the Central Bank is willing to assist the Special Investigations Team (SIT), with its investigations into the collapse of uniBank.

The lawyers in the text message further explained that, Dr Asiama’s failure to honour a meeting set on January 13, 2020 between SIT and their client was due to his absence from the country.

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The text read: “….Dr Johnson Asiama on Friday 10th January 2020 received a text message from one DSP Appeatu of the Special Investigation Team (SIT) to report on 13th January 2020. Dr Asiama instructed his lawyers to write to SIT to reschedule the invitation to the week commencing 20th January 2020 as he was not immediately available! SIT received and acknowledged the said letter.

“All attempts by the lawyers for Dr Asiama to reschedule the said invitation proved futile. Dr Asiama is ready and willing to avail himself whenever SIT reschedules the said appointment.”

SIT has been looking into the possible roles the above-named individuals might have played that led to the folding of the bank.