Thirteen months into his tenure, Bank of Ghana (BoG) Governor Dr Johnson Asiama is reshaping how monetary policy is conducted — and communicated — in Ghana.
Speaking at the Ghana Exim Fireside Chat on 25 March 2026, Dr Asiama explained why he decided to publish how each member of the Monetary Policy Committee (MPC) votes on interest rate decisions, including instances of dissent.
“The word is credibility. People have to find you credible,” Dr Asiama told attendees when asked if publishing individual votes might undermine confidence.
Traditionally, central banks present policy decisions as unanimous outcomes, keeping disagreements internal. But Dr Asiama believes the opposite is true: transparency about differing opinions strengthens credibility.
“Markets and businesses are not reassured by unanimity,” he said. “They are reassured by evidence that decisions are being made carefully, by people who have genuinely weighed the evidence.”
Communication as Policy
Dr Asiama emphasised that monetary policy works not only through numbers but through expectations. In 2025, the BoG engaged actively with the public, using direct communication to influence pricing behavior, restore confidence in the cedi, and curb dollarisation.
“If we are able to sustain these gains for another year, I am quite sure that people will not have to be compelled to price in the dollar. They themselves will see the need to operate in the cedi zone,” he explained.
A Banking Sector in Stronger Shape
The Governor highlighted the impact of coordinated supervision and policy. Ghana’s banking sector saw its Capital Adequacy Ratio rise from 14 percent to 17.5 percent, non-performing loans fall from 21.8 percent to 18.9 percent, and total deposits grow 18 percent, from GH¢276 billion to GH¢325 billion. Sector profitability surged 44 percent, from GH¢10.4 billion to GH¢15 billion.
These improvements, Dr Asiama noted, are essential for monetary policy transmission. “Banks that are well-capitalised and reducing bad loans can lend more at lower rates. The fall in lending rates from above 30 percent to below 20 percent in 2025 was only possible because the banking system was able to pass those reductions through.”
Closing the Fireside Chat, Dr Asiama said the work of stabilisation has been done, but maintaining progress is the key challenge ahead. Lower inflation, a stable cedi, cheaper credit, and stronger banks provide a better foundation for businesses, exporters, and households, he noted.
Credibility, the Governor said, describes both the method and the goal: an institution that earns trust through transparency, clear communication, and consistent follow-through is an institution whose policies work — and the results of 2025 are proof.
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