The Bank of Ghana’s (BoG) priority in 2026 is to consolidate the economic stability achieved last year, Dr. Johnson Pandit Asiama, Governor of BoG, has said.
According to Dr. Asiama, the objective is to ensure that the stability in the economy translates into durable intermediation, credible institutions, and an economy better able to absorb shocks without repeated resets.
He made the remarks at the 77th Annual New Year School and Conference of the University of Ghana, themed, “Building the Ghana We Want Together for Sustainable Development.” Dr. Asiama explained that the focus this year is shifting from restoration to consolidation, where monetary and market reforms are embedded more deeply into routine practice.
Supervision, he added, will become more risk-based and preventive, while resolution and financial infrastructure reforms will move from framework design to operational maturity.
Dr. Asiama noted that Ghana began 2025 with elevated inflation, constrained foreign exchange buffers, weakened confidence, and tighter global conditions that narrowed policy space and tested institutional resilience. These challenges eroded real incomes, discouraged investment, and affected households, small businesses, and young people, making economic stabilization a national necessity rather than a technocratic preference.
The Governor highlighted that BoG’s interventions in 2025 restored monetary and financial stability, protected the integrity of the financial system, and rebuilt confidence through measured policy actions and enhanced institutional coordination. Inflation eased from above 23% to single-digit levels, gross international reserves strengthened to about $13.8 billion (5.7 months of import cover), and confidence in the foreign exchange market improved.
Dr. Asiama emphasized that these gains are not merely statistical but provide the necessary space for planning, investment, and sustained reform, stressing that stability is the foundation for long-term development, not the ultimate destination.
On economic resilience, the Governor said predictable policies, credible institutions, and well-functioning markets are critical to ensuring stability translates into lasting growth. BoG’s approach will focus on strengthening monetary policy transmission, maintaining sound financial institutions, and ensuring transparency in liquidity allocation.
In the foreign exchange market, reforms include redirecting mining sector inflows through commercial banks, recalibrating Net Open Position limits, and introducing a new foreign exchange operations framework aligned with international best practices.
In the banking sector, prudential supervision has been tightened, capital and liquidity oversight improved, and governance standards strengthened to address vulnerabilities revealed by recent shocks. Additionally, BoG has upgraded its crisis management and resolution framework to enable early and orderly interventions when distress emerges.
BY KINGSLEY ASARE
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