Governor of the Bank of Ghana, Dr Johnson Asiama, has said sweeping legislative and policy reforms are being put in place to shield the country from a repeat of the financial turmoil that plunged the economy into crisis about three years ago.
Addressing guests at the listing ceremony of First Atlantic Bank on the Ghana Stock Exchange, Dr Asiama explained that recent amendments to the Bank of Ghana Act—passed by Parliament—are a cornerstone of efforts to rebuild confidence and reinforce the central bank’s independence.
According to him, the changes are intended to eliminate the policy lapses and institutional weaknesses that contributed to the crisis and ultimately led to the Domestic Debt Exchange Programme (DDEP).
He added that parallel reforms being implemented by the Ministry of Finance are strengthening the country’s macroeconomic foundations and helping to establish a more disciplined and shock-resistant financial system.
Dr Asiama reflected on what the World Bank characterised as a “homegrown crisis,” recalling how inflation climbed to 54.1 per cent by the end of 2022, while the cedi lost more than half of its value between 2022 and 2023.
During that period, Ghana’s foreign exchange reserves dropped to under half a month of import cover—the weakest position in several decades.
“The crisis severely eroded confidence across the financial system,” he said, noting the sharp fallout on capital markets amid fiscal pressures and extreme currency volatility.
Although the Domestic Debt Exchange Programme was unavoidable, Dr Asiama acknowledged that it placed significant pressure on banks, institutional investors and the capital market, exposing structural fragilities within Ghana’s narrow financial architecture and straining balance sheets.
“The message is unmistakable,” he stressed. “Lasting stability depends on strong institutions, diversified sources of funding, deeper markets and collective responsibility—not temporary solutions.”
He said Ghana’s recovery is now evident and tangible.
Inflation, he noted, has fallen sharply to 6.3 per cent as of the end of November 2025 and could edge closer to 5 per cent by year-end, potentially marking one of the lowest levels in many years. The cedi has also strengthened by more than 24 per cent so far this year, driven by tight monetary policy, improved external buffers and firmer fiscal discipline.
However, Dr Asiama urged caution in interpreting the currency’s performance, pointing out that the recent gains follow a 19 per cent depreciation last year and largely reflect a correction rather than an unsustainable rally.
