ghananlpcommunity/ghana-gov-speeches-sentences huggingface dataset:
This measure will also close loopholes that have allowed the artificial reduction of reserve requirements, including the misclassification of deposits as borrowings, and will clarify the treatment of e -money float accounts.
We will also introduce a framework for managing interest rate risk in the banking book, strengthen capital planning through the Internal Capital Adequacy Assessment Process, and embed more robust stress testing to ensure early detection of vulnerabilities.
In the area of market conduct and foreign exchange compliance , we are tightening enforcement of the Foreign Exchange Act and the Guidelines for Inward Remittance Services.
This means there will be no use of unapproved channels for remittance terminations, no FX swaps within remittance operations, no remittance termi nations without Bank of Ghana approval, and no application of unprescribed FX rates.
Effective immediately, all banks and payment service providers must submit weekly inward remittance reports detailing transactions and FX credits to Nostro accounts.
Failure to do so will attract sanctions under the Payment Systems and Services Act and the Banks and Specialised Deposit -Taking Institutions Act.
At the same time, we will engage the Ghana Association of Banks in a structured discussion on proposals relating to NOP support, FX forward auctions, remittance coordination, and market liquidity, with the aim of agreeing on practical, market-friendly solutions.
Finally, we will be undertaking a strategic business model thematic review .
This will involve a forward-looking assessment of the sustainability of banks’ strategies, and this will require the full engagement of boards and senior management.
Together, these measures form a single, coherent regulatory framework that not only enforces compliance with existing rules but also positions Ghana’s banking sector to withstand future shocks, compete globally, and play a stronger role in supporting sustainable economic growth The road ahead is one of opportunity matched with responsibility.
• We have a stable macroeconomic base, inflation is easing, the currency is strong, and reserves are healthy.
• The banking sector is robust, with the capacity to expand lending and deepen financial inclusion.
• The regulatory agenda is forward leaning, aligning Ghana with the highest international standards.
Your task, as leaders of the sector, is to translate stability into growth , to channel more credit into productive enterprises, support SMEs, finance critical infrastructure, and leverage digital innovations to reach underserved markets.
This will require sound risk governance, unwavering compliance, and a willingness to rethink business models considering changing customer needs, technological disruption, and climate and sustainability challenges.
At the Bank of Ghana, we are committed to engaging with you constructively, providing clear regulatory guidance, and supporting innovations that enhance the resilience and competitiveness of Ghana’s financial system.
Closing Let us approach today’s discussions not as a checklist of compliance items, but as a strategic conversation about the future of banking in Ghana.
The MPC decisions give us an opening to shift from defence to growth, from consolidation to expansion , without losing sight of the lessons learned over the past years.
The stability we enjoy today was hard-won.
It is now our joint responsibility to ensure it is not only preserved but leveraged for sustainable and inclusive prosperity.
I look forward to a frank and solutions -oriented engagement this morning.
Together, we can ensure that Ghana’s banking sector remains a pillar of confidence, innovation, and economic transformation.
CNVERGE ’25 – AFRICA’S PREMIER TRADE BANKING THOUGHT IMPACT EVENT KEYNOTE SPEECH BY DR.
ZAKARI MUMUNI FIRST DEPUTY GOVERNOR BANK OF GHANA AUGUST 6, 2025 BALLROOM, DORCHESTER HOTEL LONDON The CEO of GHIB, Financial Partners, Excellencies, Distinguished Guests, Esteemed Colleagues, It is a pleasure to be with you today to speak on the topic - Leveraging Commodities— The Central Bank’s View.
Generally, policy perspectives on commodities are often downplayed.
However, within the context of the current highly uncertain and volatile global environment , commodities have garnered significant policy attention and occupy a central position in finance, trade, and national development.
Consequently, commodities are emerging as alternate policy tools for portfolio diversification, levers for economic growth, and exerting geopolitical influence.
In several countries, l everaging commodities has become integral to policy frameworks, particularly during periods of supply chain disruptions, inflation, and market volatility.
I am sure that conversations at this Conference will offer a unique opportunity to appreciate the transformative power of natural resources —not merely as tradeable goods, but as strategic assets capable of shaping macroeconomic outcomes, influencing investor sentiment, and driving long-term growth.
Now, let me share the Central Bank’s view on leveraging commodities from the Bank of Ghana’s experience.
In setting the stage, I will recap the economic events that led Ghana to leverage its vast commodity resources, especially gold, to rebuild economic resilience.
Like most countries, Ghana’s economic performance faced significant volatility emanating from the large external shocks during the 2020 pandemic followed by the spillovers from the Russian-Ukraine war which exacerbated pre-existing fiscal and debt vulnerabilities, raising concerns about debt sustainability.
The worsening economic crisis at the time ultimately resulted in sovereign credit downgrades and loss of access to the international capital market , which hitherto was the mainstay of foreign exchange inflows.
With loss of investor confidence and constrained foreign inflows, government finances became precarious, and monetary financing kicked in with its attendant inflationary consequences.
These events exposed structural vulnerabilities in Ghana’s fiscal and debt frameworks, leading to dwindling international reserves, sharp depreciation of the local currency, and rising inflation.
But as is the case, solutions are borne out of adversities, and faced with this economic crisis, the Bank of Ghana and the Government of Ghana recognized the need to rethink the foreign exchange reserve strategies.
Not just to restore macroeconomic stability, but also to build resilience of the economy against perennial shocks.
The Case for Gold: A Strategic Turnaround using the Domestic Gold Purchase Programme The significant macroeconomic challenges Ghana faced occurred against the backdrop of large resource endowments and comparative advantage in gold mining.
Ghana has mined gold for over three centuries, and for the most part, exported all the gold.
In 2019, for instance, Ghana rank ed number one in Africa and the 7th top gold producer worldwide.
Ironically, while central banks globally acquired 670 tonnes of gold in 2019 to diversify and hedge their reserves, Ghana added nothing to its own gold reserves .
Also, gold accounted for nearly 56 percent of Ghana’s total export earnings, and yet, until 2022, gold had not featured much as an asset class in Ghana’s reserve portfolio or contributed much to reserve accumulation.
Rather, t here was heavy reliance on traditional sources of funds to the country’s foreign exchange reserves, such as inflows from cocoa syndicated loans and Eurobonds.
Faced with these facts, Ghana undertook feasibility studies on countries with domestic gold purchase program mes (including the Bank of the Philippines, Central Bank of Ecuador, South Africa Reserve Bank, Turkey Central Bank, Bank of Mongolia, etc).
Consequently, Ghana’s Domestic Gold Purchase Programme (DGPP) was launched in June 2021 to: i. increase the Bank’s gold reserves by 100% within five years – which at the time was 8.74 tonnes.
diversify the Bank’s FX reserve portfolio.
leverage the Bank’s gold holdings to raise cheaper short-term and collateralized financing, and finally, iv.
build confidence with stronger reserves and a stable currency.
Ultimately, this programme was not just about reserve accumulation but also about unlocking the potential of the country’s commodity base.
Gold for Oil (G4O): A Market-Based Solution After the successful implementation of the DGPP, the Bank extended the strategy to the Gold for Oil (G4O) initiative in 2022.
Again, this was a well-intended policy solution to moderate the adverse effects of escalating domestic ex-pump petroleum prices, which surged as high as 230% in one year , as international crude oil prices rose sharply.
Also, petroleum imports topped commodity imports into the country, exerting significant FX pressures on the limited reserve buffers.
The G4O intervention , therefore, leveraged the DGPP framework to provide FX and gold to support the importation of petroleum products through government -to- government arrangements.
The G4O intervention helped secure petroleum imports at competitive prices, easing pressure on the forex market and stabilizing ex-pump petroleum prices.
This moderated the volatile ex-pump price pass-through effects on transport costs, and in turn, inflation.
This was another c lear example of how commodities were used as instruments of liquidity and trade facilitation in the Ghanaian economy, and not just to provide export earnings.
The Ghana Gold Coin: A Financial Innovation To deepen Ghana’s financial markets and offer alternative investment vehicles, the Bank introduced the Ghana Gold Coin (GGC).
This is a high-purity, investment-grade gold coin designed to: i. Serve as a store of value ii.
Act as a hedge against inflation iii.
Provide an alternative investment asset class, and iv.
Serve as a monetary policy tool to manage excess liquidity.
Overall, t he GGC has opened new avenues for wealth preservation and portfolio diversification to the populace, especially in times of market uncertainty.
Performance and Market Impact of DGPP Since the inception of the DGPP and as of the end of June 2025, i. The central bank had purchased 145.95 tonnes of gold.
86.77 tonnes have been sold for FX to bolster reserves iii.
The Bank’s p hysical gold holdings have increased to 32.99 tonnes from 8.74 tonnes, and iv.
27.63 tonnes of gold was utilised in the settlement of 1.95 million Metric Tons of petroleum products under the G4O Initiative.
On all counts, the DGPP has impacted positively, with strong reserve accumulation, stability in the exchange rate, and easing inflation.
These have helped to improve the country’s credit profile from restrictive default to B- with a stable outlook in June 2025, boosting investor confidence.
All these developments have contributed to a stable macroeconomic environment , which is of critical interest to your work.
Opportunities for Traders and Bankers For you participants, such transformation presents opportunities to leverage the commodity ecosystem with: i. Structured products (swaps, forwards, futures) ii.
Commodity-backed financing iii.
Related opportunity around Innovative investment instruments like the Ghana Gold Coin.
Partnerships in gold aggregation, storage, and trade facilitation v. Value addition in the gold supply chain.
These notwithstanding, leveraging commodities poses some risks, mainly from price volatility and market speculation.
Furthermore, environmental and social concerns about commodity extraction and usage have emerged.
As bankers and traders, therefore, these risk factors must be embedded into strategic frameworks that seek to leverage commodities.
Conclusion Ladies and gentlemen, the global economy has entered a new era, where commodities are not just exported, but strategically leveraged to build resilience, unlock liquidity, and drive inclusive growth.
The Bank of Ghana is fully committed to this global shift and is looking forward to working with various arms to leverage all potential benefits from commodities.
LAUNCH OF THE BANK OF GHANA CHAIR IN FINANCE & ECONOMICS INAUGURAL ADDRESS BY DR.
JOHNSON ASIAMA GOVERNOR, BANK OF GHANA UNIVERSITY OF GHANA, LEGON AUGUST 5, 2025 Vice Chancellor, Professor Edward Nketiah-Amponsah, Professor Yegandi Imhotep Paul Alagidede, Esteemed faculty of the Departments of Economics and Finance, Distinguished colleagues from the Bank of Ghana, Students, members of the media, invited guests, ladies and gentlemen.
I am happy to join you this afternoon for this special occasion at Ghana’s premier university , which is also my alma mater - an institution that continues to nurture some of the finest minds in our country and across the continent.
On behalf of the Bank of Ghana, I bring warm greetings and extend our deepest appreciation to the University of Ghana for this enduring partnership and for hosting what we consider a milestone event in the advancement of economic thought and policy.
To those of us in public service, the ability to share ideas with academia is not a luxury, it is a necessity.
Because policy without intellect is blind, and theory without policy is sterile.
The partnership between the University of Ghana and the Bank of Ghana, therefore, is not just ceremonial.
It is foundational.
Significance of the Occasion Today’s inauguration of the Bank of Ghana Chair in Finance and Economics is more than the launch of a title.
It is a clear signal of our long -term commitment to knowledge, to research, and to the nurturing of a new generation of thinkers who will shape the financial architecture of tomorrow.
In supporting this Chair, the Bank affirms three enduring values: First, our belief in knowledge development and capacity -building.
Sound monetary policy rests on strong intellectual foundations.
This Chair will serve as a catalyst for cutting -edge research in inflation dynamics, exchange rate management, digital finance, regulation of virtual assets, and the evolving contours of financial stability.
Second, our mission to bridge the gap between policy and academia .
We live in a world where economic decisions must be informed by data, shaped by context, and grounded in real- world experience.
This platform creates space for rigorous scholarship to inform policy —and for policy to challenge and inspire scholarship.
And third, our commitment to supporting future economists and policymakers .
We hope that this Chair becomes not only a centre of research excellence, but also a magnet for mentoring, inspiration, and critical thought for students across Ghana and Africa.
It is a fact that university-based Chairs have long been the bedrock of forward -looking policy in leading economies.
By establishing this Chair, we join that tradition and add our own uniquely Ghanaian voice to the global discourse on monetary policy and economic development.
Let today mark the beginning of a new intellectual journey, one that will echo far beyond these walls, into policy chambers, financial institutions, and the hearts of young economists still finding their voice.
“From Cowries to Crypto” Distinguished Ladies and Gentlemen, The evolution of money is also the evolution of trust and nowhere is that journey more textured and instructive than here in Ghana.
Long before central banks and silicon chips, the people of this land exchanged value through barter, yams for cloth, salt for kola.
As our economy matured, cowries emerged as a widely accepted medium of exchange across West Africa.
Cowries were more than shells—they were social contracts.
They represented trust, obligation, and the beginnings of what we n ow understand as money.
With the intrusion of colonialism came foreign coins, Spanish doubloons, Austrian thalers, and the ubiquitous British pound.
Over time, Ghana's financial sovereignty became entangled in the currencies of others.
That’s why the introduction of the Ghana Cedi in 1965 was not just a currency change, it was an act of economic self-determination.
It was a declaration that Ghana would define its own economic path.
This journey, from cowries to colonial coinage to the Cedi , tells a story of resilience and adaptation.
And today, we are living through another turning point in the history of money: the digital revolution.
Across Africa, mobile money and fintech platforms have reshaped how people send, receive, and store value.
Ghana is among the global leaders in mobile financial innovation, with mobile wallets outnumbering traditional bank accounts.
The promise of digital inclusion is real—and it is reshaping how young people, smallholder farmers, and entrepreneurs engage with the financial system.
Yet alongside this promise, there are new uncertainties.
Cryptocurrencies have entered our markets, without borders, without central issuers, and often, without regulation.
They challenge the core functions of central banks , to issue trusted money, safeguard financial stability, and anchor public confidence.
This is why at the Bank of Ghana, we have not stood still.
We have launched a pilot of the e-Cedi, making Ghana one of the first countries in Africa to explore a central bank digital currency.
We are finalizing regulations for Virtual Asset Service Providers (V ASPs) to bring transparency and order to crypto-related activity.
And through our fintech regulatory sandbox, we are inviting innovation to flourish, but within a framework that protects the system and the consumer alike.
The theme “From Cowries to Crypto” is therefore not just historical.
It is directional.
It reminds us that money is not a static invention, it evolves with the needs, technologies, and trust of the people.
Our job, as regulators, academics, and citizens, is to shape that evolution with wisdom.
And to ensure that innovation serves inclusion, that digital tools expand opportunity, and that the Ghana Cedi, whether in coin, note, or code, remains a symbol of national confidence and continuity.
Let us honour our past by securing our monetary future together.
Challenges and Opportunities for African Monetary Policy Distinguished guests, ladies and gentlemen, As we reflect on the historical journey of money, from cowries to crypto, it becomes clear that the context within which African central banks operate today is vastly different from even two decades ago.
It is a context shaped by both daunting challenges and promising opportunities.
The Current Landscape of Monetary Policy in Africa Over the last two decades, Africa has made considerable progress in stabilizing inflation.
From an average inflation rate of over 10 percent in the 1980s and 1990s, some countries were able to bring inflation below 10 percent by the mid -2010s.
This reflect ed better monetary policy frameworks, improved fiscal coordination, and more credible institutions.
Yet, recent shocks have reminded us how fragile these gains can be.
The COVID-19 pandemic, Russia’s invasion of Ukraine, supply chain disruptions, and climate shocks have all contributed to inflationary pressures and exchange rate volatility.
Most economies in sub-Saharan Africa are small and open, and the high share of food and energy in our consumption baskets means that any external shock quickly translates into domestic inflation.
In Ghana’s case, we experienced this vividly in 2022, when inflation reached 54.1 percent, and the cedi depreciated by over 50 percent , one of only two currencies in Africa to experience such a severe decline.
Food inflation alone spiked to nearly 60 percent.
These are not just statistics; they are lived experiences , affecting household incomes, eroding savings, and shaking confidence in the financial sector.
The Role of Strong Institutions and Data-Driven Policy What these shocks underscore is the absolute necessity of credible institutions and agile, data- driven policy.
We cannot always prevent global disruptions, but we can control our response.
The resurgence of the cedi in 2025, appreciating over 42 percent year-to-date and supported by over US$11 billion in international reserves, is evidence of how disciplined policy coordination between the central bank and fiscal authorities, supported by an IMF programme, can deliver results.
To sustain these gains, we must continue to invest in our institutional capacity , particularly in research, forecasting, and risk analytics.
Central banks must evolve into intelligence -driven organizations capable of anticipating shocks and crafting forward-looking policies that are both adaptive and inclusive.
Monetary Policy Dilemmas However, even as we modernize, we face new dilemmas.
Central banks today must balance price stability with financial stability, while also navigating increasing government reliance on domestic financing.
Across the region, we see a sharp rise in banks’ holdings of government debt , from 20% of credit portfolios in 2010 to over 35% in 2023.
Ghana mirrors this trend.
As of June 30, 2025, total gross loans by banks stood at GH¢89.16 billion, while investments in government/BoG securities amounted to GH ¢162.92 billion.
This reflects a worrying skew towards risk -free assets, which crowds out private sector credit and dulls the potency of monetary policy transmission.
But as we are beginning to realize, an era of persistently high interest rates cannot be sustained.
It is now time for banks to begin re -evaluating their business models , not only to protect margins, but to serve the broader economy.
Our banking sector must become a catalyst for growth, with more targeted and productive lending to Ghanaian enterprises.
We also face a critical challenge in managing exchange rate regimes.
While many countries claim to float their currencies, in practice, there is a growing fear of depreciation.
This de facto resistance to floating limits policy flexibility and can fuel credibility gaps.
As a region, we must be honest about this divergence and work toward exchange rate frameworks that are transparent, rules-based, and credible.
The Role of Universities and Intellectual Capital And that is why partnerships like this one , with the University of Ghana , are so vital.
Universities are not just training grounds; they are idea factories.
The research, experimentation, and critique that come from academia are essential for refining policy frameworks and testing new paradigms.
We at the Bank of Ghana welcome the intellectual scrutiny that comes from scholars and students alike.
Let us use this Chair not just as an honour, but as a platform for collaboration , on inflation modelling, digital currencies, financial inclusion, and beyond.
Because the future of monetary policy in Africa will depend not only on how we respond to crises, but how we prepare for the opportunities ahead.
The Future of the BoG–UG Partnership Distinguished colleagues and esteemed scholars, The inauguration of the Bank of Ghana Chair at the University of Ghana is not a beginning; it is a continuation and deepening of a longstanding relationship between two institutions with shared responsibility for national development.
Over the years, we have forged meaningful academic linkages: providing internships for students, guest lectures by central bank officials, research support, and co -hosting policy dialogues that have informed both classroom instruction and macroeconomic policymaking.
But we are only scratching the surface of what this partnership can achieve.
Our vision going forward is ambitious yet achievable: • To launch joint research initiatives in areas such as inflation targeting, exchange rate management, digital finance, regulation of virtual assets, and monetary policy transmission.
• To create policy labs and data partnerships that allow faculty and students to work with real-time datasets, contributing meaningfully to the design and calibration of policy.
• To support curriculum development that strengthens training in central banking, risk governance, and macroprudential policy, ensuring that Ghana’s universities become the cradle of future-ready economists and policymakers.
And today, I am pleased to announce a bold new initiative that builds on this commitment: the Governor’s Future Leaders Fellowship.
Under this initiative, the Bank of Ghana with the Chair will identify high -performing university graduates with exceptional potential in economics, finance, and public policy.