The Governor of the Bank of Ghana, Dr. Johnson Asiama, assured that ongoing legislative and policy reforms will act as essential safeguards to prevent Ghana from experiencing another financial crisis.
In his address at the listing of First Atlantic Bank on the Ghana Stock Exchange, Dr. Asiama highlighted recent amendments to the Bank of Ghana Act, approved by Parliament, as a critical step to strengthen the central bank’s independence and prevent a recurrence of the conditions that necessitated the Domestic Debt Exchange Programme (DDEP).
He further remarked that additional reforms initiated by the Ministry of Finance are bolstering Ghana’s economic framework, establishing a foundation for a more resilient financial system.
Reflecting on past challenges, Dr. Asiama recalled the period referred to by the World Bank as a “homegrown crisis” just three years prior.
By the end of 2022, inflation had surged to 54.1 percent, while the Ghanaian cedi had depreciated by more than half its value between 2022 and 2023. The foreign exchange reserves at the central bank dwindled to less than half a month of import cover, reaching the lowest level in decades.
“The crisis severely undermined confidence throughout the financial system,” he stated, noting that capital markets were significantly affected amid acute fiscal stress and extreme volatility in exchange rates.
While the DDEP was essential for stabilizing public finances, Dr. Asiama clarified that it imposed considerable pressure on banks, institutional investors, and capital markets, revealing vulnerabilities in Ghana’s narrowly structured financial system and testing the resilience of balance sheets.
“The lesson is unequivocal. Sustainable stability necessitates robust institutions, diversified funding, deep markets, and shared ownership—not merely short-term solutions,” he asserted.
According to the Governor, the recovery is now “real, measurable, and meaningful.”
Inflation has decreased significantly to 6.3 percent as of the end of November 2025, with projections indicating it may further drop to around 5 percent by the end of the year—potentially marking the lowest rate observed in several years.
The cedi has also strengthened by over 24 percent year-to-date, bolstered by stricter monetary policy, enhanced external reserves, and better fiscal management.
Dr. Asiama warned against misinterpreting the currency’s performance, emphasizing that the appreciation comes after a 19 percent depreciation in the previous year, and primarily represents a correction rather than an unsustainable increase.
“This is not a genuine appreciation that should raise concerns,” he stated, noting that the currency’s performance is supported by fundamental improvements in macroeconomic conditions.
Gross international reserves have increased to more than US$11 billion, providing nearly five months of import coverage, while GDP growth reached 6.3 percent in the first half of 2025, with non-oil growth approaching 8 percent.
“These results demonstrate discipline and coordination among policy institutions,” Dr. Asiama remarked, adding that the recovery must now be accompanied by reform.
