Ghanaian President John Dramani Mahama on Tuesday swore in Johnson Asiama, and Zakari Mumuni as new Governor and First Deputy Governor respectively of the Bank of Ghana.
Swearing in the officials, Mahama pledged to ensure the independence of Bank of Ghana to ensure they deliver on their mandate and achieve macroeconomic stability.
“I am committed to ensuring that the central bank operates free from political interference, guided solely by its mandates. The strength of our economy depends on institutions that act with independence and discipline,” Mahama pledged.
Mahama urged the new officials to work hard to strengthen the economy and rebuild public trust and enhance the Bank of Ghana’s appeal.
The president urged them to uphold responsible fiscal management and adhere strictly to the legal and regulatory framework of the Bank.
He said Ghanaians must be mindful of the lessons from past fiscal recklessness and the importance of responsible fiscal management, ensuring the Bank of Ghana operates free from political interference.
Mahama urged the new leadership to work closely with key institutions while maintaining their independence.
In his response, Asiama pledged that the central bank under his watch would deepen its independence, while also engaging constructively with the government and key stakeholders.
He announced that the Bank of Ghana would introduce a range of reforms to ensure that the mandate of macroeconomic stability is achieved.
“The first need is to recalibrate our monetary policy strategy and enhance the policy framework to achieve our mandate more efficiently. Under my leadership, our policies will be clear, predictable, and responsive to emerging threats,” the governor stated.
He added, “We shall adopt a more proactive and precise approach to managing inflation, leveraging advanced data analytics and artificial intelligence. Also, we shall coordinate policy efforts with other government agencies for example to manage food prices.”
He said the central bank would also pursue reforms in the inflation targeting framework to foster more transparency and enhance the effectiveness of monetary policy implementation.
Asiama also hinted that the BoG would end the use of differentiated cash reserve requirements and instead rely on open market operations to manage liquidity conditions, improve communication regime, and ensure regular dialogue with banks on regulatory matters.
He underscored the need to preserve exchange rate stability and limit excessive volatility in the rates.
“The days of currency speculation and exchange rate instability must end, and we are poised to ensure this happens. In this regard, the Bank of Ghana under my leadership will engineer a well-functioning, and stable foreign exchange market to support economic activity,” he stated.
The governor assured, “We are confident that current levels of inflation will gradually trend back to target range within the forecast horizon.”