- Bank of Ghana Governor advises banks to revise strategies as high interest rates become unsustainable
- Dr. Asiama emphasizes banks' role in supporting productive lending and national economic growth
- Governor calls for transparent and credible exchange rate management frameworks
Governor of the Bank of Ghana, Dr. Johnson Asiama, has called on commercial banks to reassess their business models in response to the changing economic landscape, particularly the decline in interest rates.
Speaking at the inauguration of the Bank of Ghana Chair in Economics and Finance at the University of Ghana, Legon, Dr. Asiama emphasized that the era of persistently high interest rates is coming to an end.
“It’s time for banks to revise their strategies—not only to maintain profitability but also to contribute meaningfully to the wider economy,” he said.
Banks Must Drive Economic Growth
Dr. Asiama highlighted the need for the banking sector to play a more active role in national development by directing credit toward productive sectors and Ghanaian enterprises.
He noted that in an increasingly complex economic environment, central banks must strike a balance between maintaining price stability and ensuring financial system resilience, especially given governments’ rising reliance on domestic borrowing.
Exchange Rate Management Needs Reform
On currency stability, the Governor stressed the importance of moving towards transparent, rules-based exchange rate regimes.
“We must acknowledge the divergence in exchange rate systems and work towards frameworks that are credible and predictable,” he stated.
Tackling Global Shocks with Discipline
Dr. Asiama noted that while global economic disruptions may be unavoidable, Ghana’s response can make the difference.
He pointed to the 42% appreciation of the cedi in 2025, backed by over $11 billion in international reserves, as evidence of the effectiveness of coordinated fiscal and monetary policy under the IMF programme.
Partnership with University of Ghana for Research and Talent Development
The inauguration of the BoG Chair in Economics and Finance is part of the Bank’s broader strategy to invest in research and nurture future leaders in economics, finance, and public policy.
Dr. Asiama described the initiative as a deepened partnership between the Bank of Ghana and the University of Ghana, with both institutions sharing a commitment to national development.
Under the programme, exceptional students will be identified and given opportunities for scholarships, internships, and exposure to policy work. The Chair will also facilitate collaborative research in key areas such as inflation targeting, exchange rate management, digital finance, regulation, and the transmission of monetary policy.
