The Governor of the Bank of Ghana, Dr. Ernest Addison has pledged his outfit’s commitment to pursue prudent monetary policies to consolidate the gains made in the last four years to support the ongoing transformation agenda of the Government.
According to him, the previous Board and Management of the Central Bank have taken very important decisions that have shaped the development process of this country.
“I recall that immediately after the previous board was inaugurated in August 2017, we quickly had to dive into action to hold closed door meetings to deliberate on the financial sector clean up exercise of the bank and obtain some board resolutions on actions to be taken to kick off. That Board had no “honeymoon”, and I believe this reconstituted board is also coming in at a time when the Covid-19 pandemic has challenged the conduct of monetary policy and the quest for safeguarding financial stability”, he said in an address after President Akufo-Addo sworn in the board of the Bank of Ghana in which he is the Chairman.
The Governor said despite these challenges, the Central Bank has implemented prudent monetary policies which has yielded positive results.
“Despite the Covid-19 shock, inflation has eased to single digits and currently within the medium-term target band; the exchange rate has remained relatively stable, supported by adequate reserve levels that currently stands at about 5 months of import cover. In addition, we have also implemented financial sector policies which have revamped the banking sector that is now well-capitalised and well positioned to support the economic recovery and revitalization process from the pandemic”, Dr. Addison noted.
“Last but not the least, we have put in place strong regulatory frameworks and the completion of interoperability architecture at a minimal cost that are supportive of the Government’s digitisation agenda”, he added.
He also pointed out that presently Ghana’s financial digitisation drive has received massive support from all stakeholders, especially, the financial technology firms who have rolled out several innovative and diverse financial products and services within the ecosystem.
On the recovery of the Ghanaian economy from the impact of Covid-19, Dr. Addison said “we are aware that the Ghanaian economy is on a gradual recovery path from the adverse effects of the Covid-19 pandemic. However, there are still 5 uncertainties in the domestic economic environment, such as the third wave of the pandemic, which call for prudent policies to firm up the recovery process and protect livelihoods and jobs without stoking inflationary pressures”.
“This positions the Bank of Ghana right at the centre of the government’s agenda to boost growth and create jobs while maintaining macroeconomic stability in the post Covid-19 era. We are therefore committed to deliver on this mandate. Given the rich and diverse background of the team on the board, there is no doubt in my mind that, together, we can build on the solid foundation laid by our predecessors and take this institution to even greater heights”, he mentioned.
He concluded saying, the Board of the Bank of Ghana is up to the task of implementing sound policies to ensure macroeconomic stability, supported by a safe, sound, efficient and stable market-based financial system, adding these will underpin the growth and development agenda of government as it seek to build a strong, prosperous and inclusive nation.
