Ghana’s return to stability is foundation for resilient growth – Dr. Asiama

Inflation falls to single digits, reserves hit US$13.8bn as Bank of Ghana shifts focus from stabilisation to consolidation

Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has declared that Ghana’s recent macroeconomic stability must now be deliberately converted into long-term economic resilience, stressing that stability is “not the destination, but the foundation” for sustainable development.

Delivering a keynote address at the 77th Annual New Year School and Conference at the University of Ghana, Dr. Asiama said Ghana entered 2025 under severe economic strain, marked by elevated inflation, weakened confidence, tight global financial conditions, and limited policy space. According to him, macroeconomic instability was never neutral and had disproportionately affected households, small businesses, and young people.

“As you would recall, we began 2025 with elevated inflation, constrained foreign exchange buffers, weakened confidence, and tighter global conditions that narrowed policy space and tested institutional resilience,” the Governor noted.

Dr. Asiama revealed that decisive but measured interventions by the central bank have produced tangible outcomes. Inflation, which stood above 23 percent, declined into single-digit levels not recorded since 2019, while gross international reserves rose to US$13.8 billion, equivalent to 5.7 months of import cover.

“These outcomes matter not as statistics, but because they create space for planning, for investment, and for reform,” he said.

He explained that restoring confidence in monetary policy and the financial system was treated as a national necessity rather than a technocratic preference. The Bank of Ghana, he said, focused on firm policy coordination, enhanced liquidity management, clearer policy signalling, and disciplined foreign exchange operations to stabilise markets and curb speculative behaviour.

Dr. Asiama outlined significant reforms in the foreign exchange market, including redirecting mining sector FX inflows through commercial banks to deepen interbank liquidity and recalibrating Net Open Position limits to improve price discovery.

“A new foreign exchange operations framework, aligned with best practices, was introduced to support reserve accumulation and mitigate excessive short-term volatility,” he explained.

Within the banking sector, the Governor said tighter prudential supervision, improved capital oversight, and strengthened governance standards had reinforced financial sector resilience. Non-performing loans declined while capital buffers improved, reflecting a gradual restoration of sector soundness.

Looking ahead to 2026, Dr. Asiama said the Bank’s focus would shift from restoring stability to consolidating gains.

“The objective is to ensure that stability translates into durable intermediation, credible institutions, and an economy better able to absorb shocks without repeated resets,” he stressed.

He concluded by urging collective responsibility across government, academia, the private sector, and citizens, stating that Ghana’s development aspirations could only be achieved through sustained institutional discipline and shared commitment.