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Governor Talks - Ghana: From Crisis to Confidence: Ghana’s Journey to Macroeconomic Stabilization

Thursday, Oct 16, 2025 | 09:45 AM - 10:15 AM

Location: Cedar Hall HQ1-1-660

 


 

 

SUMMARY

 

Key Points:

  • Macroeconomic stabilization: progress, costs and challenges. Ghana’s macroeconomic turnaround is underpinned by steady disinflation reflecting tight monetary policy and sterilization of excess liquidity, strong rebound in growth, international reserve build-up, and positive performance under the ECF program. Sterilization has presented challenges for the Bank of Ghana’s balance sheet. The authorities aim to rebuild the central bank’s balance sheet over the medium term, in addition to enhancing independence and limiting monetary financing through legislative changes.
  • Foreign exchange and reserve management. Ghana operates a managed floating exchange rate regime, focused on smoothing excessive volatilities. Recent central bank interventions to support the FX market have primarily aimed to address large, one-off payments. The authorities are actively strengthening Ghana’s foreign reserves, which now provide coverage for around 4.5 months of imports. The Bank of Ghana continues to complement its international reserve buildup through its intermediating role in the Domestic Gold Purchase Program.
  • Crypto assets. The central bank has observed a shift in remittance flows, with some now moving away from traditional banking channels to crypto assets and stablecoins. In response, policy measures are being implemented to establish a regulatory framework—supported by the IMF— including a new draft bill to regulate crypto assets in Ghana. Additionally, the Bank of Ghana has created a dedicated department to closely monitor these evolving financial flows.

Quotes:

“We came into office with lots of liquidity, high inflation, exchange rate that was depreciating widely. And I remember, when we came in, there was talk about whether we should cancel the [IMF] program altogether. There were doubts as to whether we would be able to carry on with the program and end it. But I'm happy to say that, eight months down the road, we are turning the corner. Ghana is back.” Johnson P. Asiama

“We want to build more and more of reserves because, as you know, we are still a commodity exporting country. The risks remain. And so, apart from sound macroeconomic policy, we also have to make sure we have adequate reserves, just in case the headwinds approach”. Johnson P. Asiama

“The local currency will be 60 years this year and we want that to mark a new beginning. Because when we use the local currency in all transactions, that enhances the efficiency of monetary policy. It's at the core of most of our problems. So, it's one of the things I would want to be remembered for, that I came, I solved that problem, I made the local currency the currency of choice.” Johnson P. Asiama

Contributor: Drazen Rakic

OVERVIEW

 

Ghana’s economic recovery is steadily gaining momentum, marked by a significant decline in inflation, international reserves buildup, and improvements in the financial system’s resilience. This progress has been supported by a series of decisive policy actions by the Bank of Ghana. The central bank has maintained a tight monetary stance, introduced gold-backed reserve initiatives such as the Domestic Gold Purchase Program, and implemented reforms aimed at strengthening its institutional independence and financial stability. As Ghana continues to navigate challenges in foreign exchange management and the growing influence of crypto assets, the Bank remains focused on sustaining macroeconomic stability and reinforcing public confidence in the financial system. Under the leadership of the Governor, the Bank of Ghana has demonstrated a clear commitment to transparency, resilience, and modernization—laying the foundation for a more robust and future-ready financial architecture that supports long-term economic transformation.

SPEAKER

 

 

Johnson P. Asiama
Governor of the Bank of Ghana

Dr. Johnson P. Asiama is the Governor of the Bank of Ghana, a position he assumed in February 2025 following his appointment by the President of the Republic. A distinguished Ghanaian economist, Dr. Asiama brings to the role over two decades of experience in central banking, financial regulation, and macroeconomic management.

Throughout his career at the Bank of Ghana, which began in 1996, Dr. Asiama served in various leadership capacities across Banking Supervision, Financial Markets, and Research departments. In 2016, he was appointed Second Deputy Governor, where he played a critical role in coordinating the Monetary Policy Committee (MPC) and advancing key reforms in monetary operations, banking regulation, and financial inclusion. His leadership continues to focus on promoting price stability, financial sector resilience, and institutional independence.

Dr. Asiama holds an MPhil in Economics from the University of Ghana, Legon, and a PhD in Economics from the University of Southampton, UK. His research and professional interests span monetary economics, financial stability, and risk management, forming the backbone of his policy decisions.

Prior to his appointment as Governor, he served as Director of the Macroeconomic Management Department at the West African Institute for Financial and Economic Management (WAIFEM), where he led regional policy training and advisory programs for central banks and ministries of finance across ECOWAS member states.

Since assuming office as Governor, Dr. Asiama has provided steady leadership in a period marked by post-crisis macroeconomic adjustment. Under his stewardship, the Bank of Ghana has worked closely with the Ministry of Finance and the IMF to restore macroeconomic stability, culminating in the successful completion of the Fourth Review under Ghana’s Extended Credit Facility (ECF). His leadership has contributed to restoring market confidence, stabilizing the cedi, and anchoring inflation expectations.

Dr. Asiama’s policy legacy includes pivotal contributions to Ghana’s financial legal framework particularly the enactment of the Banks and Specialized Deposit-Taking Institutions Act and the Deposit Protection Act. As Governor, he continues to prioritize sound supervision and systemic risk management, while promoting innovation and digital transformation in the financial sector. His role in establishing the Fintech & Innovation Office and the Payments Systems Department reflects his commitment to future-proofing Ghana’s financial architecture.

As Governor, Dr. Asiama remains focused on strengthening institutional governance, ensuring transparency in policy communication, and deepening financial markets to support Ghana’s economic transformation agenda.

MODERATOR

 

 

Abebe Aemro Selassie
Director of the African Department

Abebe Aemro Selassie is the Director of the African Department, where he oversees the IMF’s operations and engagement with 45 countries across sub-Saharan Africa.

Under his leadership the IMF has disbursed some $51 billion to support the post pandemic recovery and foster greener more inclusive growth. Working tirelessly alongside the region’s leaders Mr. Selassie strives to strengthen the region’s financial architecture and support Africa reaching its true potential.

Before taking up his current position in 2016, Mr. Selassie gained extensive experience in a wide-ranging career at the IMF. He held various senior positions, including Deputy Director in the African Department, Mission Chief for Portugal during the Euro Area Crisis and South Africa. He has served as the IMF’s Senior Resident Representative in Uganda and earlier in his career, he worked on the Fund’s lending programs with Turkey, Thailand, Romania and Estonia. While in the Strategy, Policy and Review Department he was deeply involved in low-income country and emerging-market programs and policy design issues.

Before joining the IMF in 1994, he worked for the Government of Ethiopia as Principal Economist in the Office of the President and at the Economist Intelligence Unit in London