Governor of the Bank of Ghana, Dr. Johnson Asiama, has assured that ongoing legislative and policy reforms will act as a critical safeguard to prevent Ghana from sliding back into a financial crisis.
Speaking at the listing of First Atlantic Bank on the Ghana Stock Exchange on the progress of the country’s economic recovery, Dr. Asiama highlighted recent amendments to the Bank of Ghana Act, approved by Parliament, as a key measure to strengthen central bank independence and prevent a recurrence of the conditions that led to the Domestic Debt Exchange Programme (DDEP).
He also noted that additional reforms introduced by the Ministry of Finance are further reinforcing Ghana’s economic framework, laying the foundation for a more resilient financial system.
Reflecting on the challenges of the past, Dr. Asiama recalled the period described by the World Bank as a “homegrown crisis” just three years ago.
Inflation surged to 54.1 per cent by the end of 2022, while the Ghana Cedi lost more than half of its value between 2022 and 2023. Foreign exchange reserves at the central bank fell to less than half a month of import cover, marking the lowest level in decades.
“The crisis battered confidence across the financial system,” he said, noting that capital markets were heavily impacted amid acute fiscal stress and extreme exchange rate volatility.
While the DDEP was necessary to stabilise public finances, Dr. Asiama explained, it placed significant strain on banks, institutional investors, and capital markets, exposing vulnerabilities in Ghana’s narrowly structured financial system and testing the resilience of balance sheets.
“The lesson is clear. Sustainable stability requires strong institutions, diversified funding, deep markets, and shared ownership—not just short-term fixes,” he said.
According to the Governor, the recovery is now “real, measurable, and meaningful.”
Inflation has fallen sharply to 6.3 percent as of the end of November 2025, with expectations that it could decline further toward 5 percent by year-end—potentially the lowest level recorded 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 misreading the currency’s performance, noting that the appreciation follows a 19 per cent depreciation the previous year, and largely reflects a correction rather than an unsustainable surge.
“This is not a real appreciation to be concerned about,” he said, adding that the currency’s performance is underpinned by fundamental improvements in macroeconomic conditions.
Gross international reserves have risen to over 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,” Dr. Asiama said, adding that recovery must now be followed by reform.
