Real sector indicators show pickup in economic activities, improved growth prospects – BoG Governor

The Governor of the Bank of Ghana, Dr. Johnson Asiama, shared positive news about the economy. He stated that economic data shows a rise in activities. The growth outlook remains strong.

Dr. Asiama spoke at the 9th Ghana CEO Summit and Expo. He noted that exports, private sector credit, and construction drive economic performance.

He highlighted the Ghana Purchasing Managers’ Index as a key indicator. It rose above the 50-benchmark, showing increased output and new orders.

His address focused on monetary policy and financial stability for sustainable growth.

The latest confidence survey is at its highest in seven years. This is due to easing inflation and optimism about macroeconomic conditions.

Cedi Stability and Bank of Ghana

Dr. Asiama emphasized that the Bank of Ghana won't use international reserves to support the cedi. He explained that currency strengthening comes from disciplined monetary policy and reforms.

He mentioned enhanced remittance channels and stricter market surveillance as factors too. These are not just short-term interventions.

The Governor announced a review of the Cash Reserve Ratio requirement starting June 5, 2025. This aims to improve FX risk alignment and liquidity planning.

He assured CEOs at the summit that they are aware of external vulnerabilities. These include disinflation in global markets and a proposed U.S. tax on remittances.

Dr. Asiama stressed that vigilance is still necessary due to these risks.

Improved Dialogue with Chief Executives

The Governor revealed plans for a Bank of Ghana-CEO Forum. This forum will create a structured platform for dialogue and market intelligence gathering.

He drew inspiration from best practices like those used by the U.S. Federal Reserve for feedback from regional CEO councils.

Dr. Asiama clarified that this initiative isn't about co-authoring policy but ensuring informed policies impact investment positively.

Governor’s Vision

Dr. Asiama outlined six key areas he prioritizes for banking sector improvement:

1. A modern, transparent monetary policy framework.
2. A credible foreign exchange market with sound reserves.
3. Strengthened regulation for a stable banking system.
4. Innovation through fintech and digital finance.
5. Alignment between monetary and fiscal policies while maintaining independence.
6. Restoring the Bank's balance sheet strength for long-term credibility.

He concluded by stating these priorities reflect both institutional responsibility and current demands.