reforms to strengthen monetary policy formulation. 18. mr. chairman, going through the programme for this seminar, i have no doubt that much will be learned to greatly enhance communication in our respective central banks. i urge all of you participants to note the important take - away points from this seminar. for example, how does effective communication enhance central bank credibility and effectiveness of monetary policy? how should we manage communication in times of crisis? and what lessons should we learn from cross - country experiences in central bank communications? 19. mr. chairman, these foregoing remarks are just a few pointers to set off the discussions on the topic. i do hope that by the end of this seminar, the presentations and detailed discussions will deepen our understanding of central bank communication and monetary policy credibility. on this note, let me once again thank the executive secretariat and the planning committee for putting this seminar together. 20. i wish you all fruitful discussions. thank you.

opening address delivered at the 2017 continental seminar of the association of african central banks ( aacb ) by dr johnson p. asiama second deputy governor, bank of ghana theme : credible communication strategies of central banks in the framework of monetary policy and financial stability at movenick ambassador hotel on may 03, 2017 mr. chairman, the executive secretary, aacb, facilitators on the theme & sub - themes, technical experts from our respective central banks distinguished guests, ladies and gentlemen, introduction 1. it is a pleasure to join you at this all important continental seminar of the association of african central banks ( aacb ). i wish to first thank the aacb for choosing ghana as the host and also warmly welcome all delegates, especially the first time visitors. 2. mr. chairman, i consider the sub - theme for this seminar session, “ credible communication strategies for central banks in the framework of monetary policy and financial stability, ” timely because of the emerging role of communication as a tool to shape expectations towards achieving the core mandate of price stability. therefore, my opening remarks will briefly touch on monetary policy formulation in africa and the move towards incorporating communication in the monetary policy formulation process. monetary policy in africa 3. mr. chairman, africa is a continent of developing and emerging economies therefore policies are broadly aimed at promoting economic growth, poverty reduction and development. in the recent past, most african central banks assumed developmental roles by directly intervening in the real sector of the economy. with this role, monetary policy formulation in the early 1970s was directed at financing large fiscal deficits incurred in the pursuit of accelerated growth and development. the monetary accommodation of fiscal deficits and in some instances direct controls on interest and exchange rates resulted in severe financial repression. 4. the independence of central banks then was largely non - existent and government economic policies were mostly directives for state institutions, including the central bank. central bank communication was limited to regulatory and supervisory guidelines issued periodically to financial institutions under its control. economic agents seeking information had to depend on ex - post publications to conjecture the stance of monetary policy pursued during the course of the year. 5. mr. chairman, with paradigm shifts on monetary policy making in the global economy, it became clear that the direct instruments were not only devoid of market or price signals but also distortionary in the allocation of resources. the prevalence of state - owned banks in africa at the time further perpetuated such distortions as political directives informed the allocation of financial resources to the economy.