BoG Governor advocates recalibration of monetary policy for efficiency

The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has stressed on the need to recalibrate the country’s monetary policy strategy and enhance its policy framework to ensure a more effective and efficient fulfillment of the central bank’s mandate.

Speaking at the Jubilee House after a swearing in ceremony of the Governor and his deputy Dr. Zakari Mumuni,  Dr. Asiama  noted that as global and domestic financial landscapes evolve, central banks must adapt to remain effective in maintaining price stability, fostering economic growth, and ensuring a resilient financial system.

He promised to coordinate policy efforts with other government agencies for example to manage food prices.

“We shall adopt a more proactive and precise approach to managing inflation, leveraging on advanced data analytics and artificial intelligence. Also, we shall coordinate policy efforts with other government agencies, for example, in managing food prices. We shall be consistent in our policy actions to avoid sending conflicting signals as happened in the recent past, and we shall work to enhance monetary policy implementation in general.” He stated.

According to him, his administration will implement a more transparent and effective monetary policy by leveraging the country’s gold reserve support the Ghana cedi while combating inflation.

“Excellencies, we shall pursue reforms in the inflation targeting framework, and this is meant to foster more transparency and enhance the effectiveness of monetary policy implementation. Excellencies, we shall leverage our gold reserves and strategic foreign assets more effectively to support the Ghana cedi. We shall also reform the Bank of Ghana’s Domestic Gold Purchase Program to improve efficiency, enhance reserve accumulation, and increase transparency in gold transactions.

“Through these measures, we will build a more resilient foreign exchange market that inspires confidence among investors and businesses. Excellency, the third among our priority areas is the need to realign our regulatory mandates to promote greater levels of financial intermediation to support economic growth. While our banking sector remains broadly stable now after the recent crisis, it requires targeted reforms to address legacy challenges and ensure continued resilience.” He disclosed.

The newly sworn-in Governor of the Bank of Ghana also revealed that while the central bank, under his leadership, will collaborate with the government and Ghana’s international partners, it will uphold its independence, as enshrined in the Bank of Ghana Act 2002 (Act 612), to protect the institution’s autonomous stature.

“Under our stewardship, we shall enforce strict prudential regulations while fostering an enabling environment for responsible lending and innovation in the banking sector. My fifth priority is on the need to promote greater fiscal and monetary policy coordination, just as His Excellency has mentioned while maintaining our operational independence.

“The Bank of Ghana operates independently under the BOG Act 2002, Act 612, and as amended and we will hold this independence while working collaboratively with government and our international partners. We will strengthen our independence further, and we shall enhance key provisions in the Bank of Ghana Act and as amended. All to ensure that institutional autonomy is not just a legal principle, but a practical reality in our policy making operations.” He said.

Source: Elvisanokyenews.com