closing address delivered by mr. millison narh first deputy governor, bank of ghana at 2017 continental seminar of the association of african central banks ( aacb ) at movenick ambassador hotel on may 05, 2017 the executive secretary, aacb, colleague central bankers, distinguished guests, ladies and gentlemen, introduction 1. i am delighted to be part of the 2017 continental seminar. i am reliably informed that the deliberations were very fruitful. 2. effective communication has now emerged as one of the most crucial and latest addition to the menu of monetary and financial stability policy tools at the disposal of central banks in our modern era. within the framework of inflation targeting and market based, prudential regulation of financial institutions, the need to have an effective, wellcoordinated and targeted communication strategy cannot be ignored by any central bank that wants to succeed in delivering the twin mandate of price and financial stability. 3. as was mentioned, the importance of having a carefully planned communication strategy is well captured in the statement by a deputy governor of the federal reserve bank of new zealand, that ‘ central bank ’ s pronouncements have economic and social impact. ’ 4. to this end my colleague, the second deputy governor of bank of ghana, challenged you to find answers to three important questions at this seminar : a. how should central banks manage communication in times of financial crisis? b. how does effective communication enhance central bank credibility and effectiveness of monetary policy and for maintaining stability in the financial sector? and c. what lessons should we learn from cross - country experiences in central bank communications strategies? 5. i hope the various expert presentations and the plenary sessions have helped you enhance your knowledge and understanding of these and other pertinent issues bordering on communication in the central bank. 6. some of the key points gathered at this seminar include but not limited to the following : a. that effective central bank communication requires a consciously designed strategy in line core mandates, the adoption of the most suited medium, and with specific target audience in mind ; b. there is also the need to have specific strategies for monetary policy and financial stability. but the effectiveness of adopted strategies should be assessed regularly through surveys and feedback in order to adjust to the changing circumstances ; c. finally, the issue of consistency in message, proper coordination and adequate funding of communication activities must not be underestimated. 7. colleague governors and i would surely be expecting to receive the communique from this seminar to help us consider

to meet this requirement and we may end the year ba es o f gh a na nk t. 1 9 5 7 with many more banks meeting the minimum capital requirement than was originally anticipated. this will help ensure a banking industry that is well capitalized and well - positioned to support the much needed economic transformation ghana needs. 5. we have been working with the fiscal authorities and other stakeholders to create the enabling environment to support growth and i am happy to report that we are beginning to see good results. at the last monetary policy committee meeting, we observed that economic activity continued to strengthen with robust export growth, higher industrial electricity consumption and higher tourist arrivals. overall, the country remains on a steady growth path with the first quarter 2018 gdp outturn estimated at 6. 8 percent, compared with 6. 7 percent in the same period of 2017. also, the bank ’ s updated composite index of economic activity ( ciea ) showed a strong pickup in the year to july. ghana recorded a trade surplus of $ 1. 4 billion at the end of august. headline inflation broadly declined and has ranged between 9. 6 and 9. 9 percent over the past five months, despite the marginal upticks occasioned by adjustments in administered prices. 6. the cedi ’ s strong performance against the major international currencies in the first quarter of 2018 weakened in the subsequent quarters ba es o f gh a na nk t. 1 9 5 7 as the currency came under pressure, mainly from emerging and frontier market contagion effects. factors such as the us fed rate increases due to continued monetary policy normalization, strengthening of the us dollar, rise in us yield rates, and the escalating trade tensions have all taken a toll on emerging market and frontier economy assets. 7. the combination of these factors have resulted in a tight financing conditions, reverse capital flows and exchange rate pressures in most emerging market and frontier economies, including ghana. however, different countries have responded differently depending on the strength of their underlying macroeconomic fundamentals. the impact on the exchange rate in ghana has been somewhat moderated compared to other ems and frontier economies — a testament to the gains in macroeconomic stability achieved over the past 18 months. while currencies in other ems are still under stress, ghana ’ s currency has recently regained some stability and the local currency is gradually becoming more stable. indeed ghana has recently received an upgrade by standard and poor ’ s to her sovereign credit rating on the back of improved monetary