Omanghana
Governor of the Bank of Ghana Dr Johnson Pandit Asiama has stressed that continued fiscal and monetary discipline will be essential to protect the country’s recent macroeconomic gains and restore lasting confidence in the economy.
According to the Governor, Ghana must resist pressure for short-term policy responses that could undermine the progress achieved through difficult economic adjustments.
Speaking at the Bank’s 2026 New Year media engagement, Dr Asiama described 2025 as a period of rebuilding stability, restoring confidence in economic management and re-establishing order within important areas of the financial system.
“With stability restored, 2026 is about consolidation and discipline,” he said.
He explained that the central bank’s priority is to incorporate recent reforms into its regular operations so that improved economic indicators translate into predictable markets, effective financial intermediation and sustainable confidence.
Monetary policy will remain measured, data-driven and focused on maintaining price stability. The Bank will also use clear communication and consistent liquidity management to avoid creating unnecessary uncertainty for investors, businesses and households.
“The objective is not to surprise markets, but to reinforce credibility through continuity,” Dr Asiama stated.
The Governor said the Bank’s decisions would continue to be guided by evidence, emerging risks and the medium-term outlook rather than political pressure, speculation or public sentiment.
He noted that some policies may be uncomfortable in the short term but must be judged by whether they can preserve economic and financial stability over a longer period.
The coordination of fiscal and monetary policies remains a central part of Ghana’s recovery program. Restrictions on central bank financing of government expenditure are intended to prevent excessive money creation from driving inflation and weakening the cedi.
Fiscal discipline is equally important. Government expenditure must remain aligned with available revenue to prevent the return of large deficits and excessive domestic borrowing.
Recent fiscal adjustment has relied heavily on spending controls, particularly where revenue has fallen below projections. While this approach has helped improve the fiscal position, the International Monetary Fund has warned that prolonged expenditure compression could affect development and security needs.
The Bank of Ghana is also expected to continue protecting the value of the local currency by strengthening foreign-exchange market reforms, improving reserve accumulation and promoting orderly price discovery.
Dr Asiama said reforms within the foreign-exchange and money markets would be deepened to encourage disciplined conduct and reduce avoidable volatility.
The central bank will also move towards preventing financial-sector risks before they become major threats.
Greater supervisory attention will be placed on governance standards, capital adequacy, liquidity planning and the early identification of weaknesses within banks and other regulated institutions.
In digital finance, the Bank plans to strengthen oversight as mobile payments and other technology-driven financial services continue to expand.
The central bank’s approach will seek to support innovation while protecting consumers, improving system reliability and ensuring that companies operate within clear regulatory boundaries.
Despite the improving domestic outlook, Ghana remains vulnerable to international developments, including geopolitical conflicts, changes in crude oil prices, tighter global financial conditions and other supply disruptions.
Such external shocks could increase import costs, place pressure on the cedi and reverse progress in controlling inflation. The Bank will therefore continue monitoring international and domestic risks before adjusting its policy stance.
Dr Asiama maintained that the central bank’s goal is not simply to produce favorable economic figures. It wants to create a stable environment in which families can plan their finances, businesses can make long-term investments and financial institutions can support productive economic activity.
He said the emphasis for 2026 would be on strengthening institutions and ensuring that recent stability becomes a permanent feature of Ghana’s economy rather than a temporary improvement. Bank of Ghana, IMF
Source: Omanghana
