Diaspora capital key to BoG’s foreign exchange stability plan – BoG Governor

The Bank of Ghana (BoG) has identified diaspora capital as a critical pillar in its strategy to stabilise the country’s foreign exchange (FX) market and strengthen long-term macroeconomic resilience.

Speaking at the maiden London–Accra Diaspora Economic Growth Summit in Accra, Governor of the Bank of Ghana, Dr Johnson Pandit Asiama, stressed that remittances and diaspora investments must evolve beyond household consumption to become structured, investment-driven inflows that support FX stability and sustainable growth.

According to Dr Asiama, remittances already play a “structurally important and countercyclical” role in Ghana’s foreign exchange supply, helping to support the balance of payments and cushion the economy during periods of external shocks. However, he noted that their full potential remains underutilised.

“Diaspora inflows must be deliberately channelled into productive investments that drive long-term growth, create jobs and strengthen macroeconomic stability,” the BoG Governor stated.

He revealed that between January and September 2025, remittance inflows from the United Kingdom accounted for 17.5 per cent of Ghana’s total remittance receipts, highlighting the UK as a major FX corridor. This, however, represents a decline from 27.6 per cent recorded during the same period in 2024, indicating room for policy intervention to scale up inflows.

To address this, the Bank of Ghana plans to complement remittance flows with investment-oriented financial instruments, including diaspora bonds, collective investment schemes and other capital market products designed to mobilise diaspora savings into productive sectors of the economy.

“These instruments will allow diaspora capital to support small and medium-sized enterprises, housing, agriculture and industrial expansion, while offering transparent and well-regulated returns to investors,” Dr Asiama explained.

The Governor further disclosed that BoG is advancing foreign exchange market reforms aimed at improving liquidity, transparency and price formation. He said a stronger FX market would boost investor confidence, facilitate trade and reduce reliance on volatile short-term capital flows.

Capital market deepening, he added, remains a top priority for the central bank, noting that well-functioning debt and equity markets enhance economic resilience and reduce vulnerability to external shocks.

Dr Asiama also announced plans to roll out a National Remittance Strategy in collaboration with the Ministry of Finance, alongside a Remittance Roadshow to strengthen engagement with Ghanaians abroad and promote formal remittance channels.

“The diaspora brings patient capital, credibility and confidence to Ghana’s financial system. Their participation is essential to broadening stable FX inflows and supporting long-term financial stability,” he said.

The summit brought together policymakers, financial institutions and diaspora leaders, with the Bank of Ghana positioning itself as a convener to translate dialogue into concrete investment outcomes for Ghana’s economy.