Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, has reaffirmed the stability of the cedi and Ghana’s improving macroeconomic outlook, while highlighting the difficult policy trade-offs central banks must navigate to balance growth and inflation.
Speaking at the Governor’s Roundtable during the Kwahu Business Forum on Sunday, April 5, Dr. Asiama said Ghana’s economic performance in 2025 reflected strong macroeconomic fundamentals, citing exchange rate stability as a key indicator.
“The cedi is stable and under control,” he stated, noting that recent macroeconomic data point to improved confidence and discipline within the economy.
Dr. Asiama emphasised that central banking is inherently about making difficult choices, particularly when policies that support growth may come at the expense of higher inflation, and vice versa.
“The work we do is always about trade-offs… trying to strike the right balance,” he explained.
According to the Governor, while the strong macroeconomic performance recorded in 2025 delivered positive spillovers for the wider economy, it came at a significant cost to the central bank. He disclosed that substantial resources were deployed to mop up excess liquidity in the financial system as part of efforts to rein in inflation.
“Last year was good but expensive for the central bank. It took us a lot of money to mop up excess liquidity and bring inflation down to 5.4 percent by December 2025,” he said.
Dr. Asiama, however, expressed optimism about the outlook for 2026, indicating that maintaining price stability going forward would require fewer resources, given the progress already made.
“If you look at where inflation was at the end of December 2024 and where it is now, it wouldn’t involve the same level of resources to keep it low and stable going forward,” he noted.
Touching on the importance of partnership with the private sector, the Governor assured the business community of the central bank’s commitment to a sound and supportive financial system.
“When banks are strong, they can give more credit,” he said, stressing that market strengthening remains central to the Bank of Ghana’s agenda.
The Governor’s Roundtable marked the closing session of the 2026 Kwahu Business Forum, which began on April 3.
The forum brought together business leaders, investors, policymakers and development partners to deliberate on policy measures aimed at stimulating private sector growth and economic development.
Notable attendees included the Chief of Staff to the President, Mr. Julius Debrah; Eastern Regional Minister, Mrs. Rita Akosua Adjei Awatey; Economic Adviser to the President, Mr. Seth Terkper; and Legal Counsel to the President, Ms. Marietta Agyeiwaa Brew.
Source: businesspostonline
