Media Soiree
Welcome Address
by
Dr. Maxwell Opoku-Afari
First Deputy Governor, Bank of Ghana
January 17, 2020
Accra City Hotel
Distinguished Guests,
Ladies and Gentlemen,
1. Good evening and on behalf of the Board of Directors and
Management of the Bank of Ghana, I would like to welcome you to this
evening's event. First, let me thank you all for honouring our invitation
and for making this event possible. Gatherings like this offer us greater
scope and latitude to reflect on critical happenings in the past year,
especially those that relate to the functions of the Bank of Ghana, and
to see how we can foster closer collaboration going forward and in the
interest of the nation.
2. On all counts, the Bank of Ghana recognises the important role
journalists play in sensitising the public about policies and programs
nationwide, especially during the Bank's Monetary Policy meetings. As
a Bank, we always look for opportunities to improve such strategic
partnerships with a view to deepen our communications which remains
critical to enhancing the achievement of our core objectives. In this
regard, we see you as a major stakeholder for the crucial role of
helping disseminate our policies to the general public. And so, let me
take the opportunity to thank you all for your various roles in
supporting the policy process and for the achievements chalked so far.
Surely, without you, our policy decisions would have been difficult or
even impossible to convey across the country. I am hopeful that the
collaboration will continue in the years ahead.
3. Ladies and Gentlemen, journalism is one of the most powerful
professions in our world today because it helps propagate and shape
ideas, policies, programs and the destiny of societies. Indeed, financial
journalism can be used as a tool to advance the objectives of sound
fiscal policies, efficient transmission of monetary policies, address
bottlenecks hindering financial intermediation in the banking sector,
promote structural reforms, and above all support the process of
economic growth and poverty reduction.
Distinguished guests, ladies and gentlemen, permit me to briefly
touch on the role of the Press in the Bank of Ghana's Monetary
Policy Process and a few recent developments...
4. As mentioned earlier, the Bank of Ghana sees the press as a strategic
partner and important stakeholder in helping communicate and
sensitize the public about the Bank's policy decisions. In fact, the
literature on central bank communication explains that an appropriate
and sound communications framework of a central bank is essential in
conveying policy intentions to economic agents and helps to enhance
the transmission of policy impulses. This is particularly true in the case
of the Bank's current policy framework of inflation targeting where the
central bank's ability to anchor private sectors' inflation expectations
plays a crucial role in the achievement of its inflation targets.
Moreover, communication with the public and transparency are central
tenets of inflation targeting and therefore underscore the role of the
media in conveying policy decisions to economic agents.
5. Members of the Press, Ladies and Gentleman, remarkable progress
was further made on the macroeconomic front in the past year. In
particular, the latest economic data reflect strong growth prospects,
single digit inflation since April 2018, and three consecutive years of
record trade surpluses which has enhanced prospects of additional
reserves build-up. Monetary policy implementation has remained
prudent to critically deal with inflationary risks in the outlook in support
of broader macroeconomic objectives.
6. On the financial sector, the Bank concluded the two-year
comprehensive clean-up and recapitalisation reforms. These reforms
have helped restore public confidence in the sector, strengthened
financial sector stability and resilience, and promoted ethical banking
practices. Gains from these reforms have begun to reflect in key
indicators of the industry including a rebound in credit growth and
banks' profitability. The media has been particularly supportive in all
our processes in carefully disseminating the central bank's policies and
outcomes to the public. Let me thank you all once again for your
various roles in this regard.
7. Going forward, the Bank will continue to pursue the appropriate mix of
policies to sustain macroeconomic stability, a key pre-requisite for
sustainable growth of the economy. The bank will also remain vigilant
to sustain the progress made in restoring stability and confidence in
the financial sector to forestall a recurrence of such malaise. It is clear
at this stage that the media and journalists in general have a critical
role to play in the sustenance of financial stability. In this regards, the
Bank will continue to expect your continued support in undertaking
important tasks for the country.
8. Before I conclude let me touch on the important significance of this
year 2020. The year marks the first time fiscal policy management
under a rule based regime will be tested in an election year and also
from a monetary policy point of view, the first time the memorandum
of understanding between the MOF and the BOG will also be tested in
an election year. Let me seize this opportunity to assure all that the
institutional frameworks that have been put in place to ensure
compliance with these arrangements is intact.
9. Thank you for the attention and let us use this soiree to interact as
much as possible and build stronger bonds as we work in the interest
of the country.