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Reuters
5 days ago
- Business
- Reuters
Ghana central bank governor urged MPC to consider how to support economic recovery
ACCRA, July 18 (Reuters) - Ghana's central bank governor urged an emergency meeting of the bank's Monetary Policy Committee to consider how to support the country's economic recovery without taking undue risks, a copy of his remarks sent to journalists on Friday showed. The West African country has been emerging from its most severe economic crisis in decades, with economic growth accelerating in the first quarter and inflation (GHCPIY=ECI), opens new tab dropping to its lowest level since December 2021 in June. The Bank of Ghana convened Thursday's special MPC meeting to review economic data and market developments. But in the end it did not take any decision on its policy rate (GHCBIR=ECI), opens new tab ahead of the regular meeting Governor Johnson Asiama later said would take place in about 10 days' time. "The key question is whether the current macroeconomic configuration permits a recalibration of the policy stance," Asiama said in his opening remarks to MPC members on Thursday. "With inflation expectations more firmly anchored, external buffers strengthened, and confidence returning, we must assess how to support the recovery without compromising the gains achieved," he added. Among positive macroeconomic indicators the governor cited Ghana's robust external position, reflected in its $5.6 billion trade surplus in the first half of the year, and its wider current account surplus of $3.4 billion. He also noted a more than 40% year-to-date appreciation of the cedi against the dollar and healthier reserves but said risks remained from last year's fiscal deficit and an uncertain global economic environment.
Reuters
6 days ago
- Business
- Reuters
Ghana's central bank will discuss key rate in 10 days, governor says
ACCRA, July 17 (Reuters) - Ghana's central bank held an emergency meeting on Thursday to review economic data and market developments, but did not discuss its key policy rate, Governor Johnson Asiama said, adding the main meeting is in 10 days. In a statement released late on Wednesday, the Bank of Ghana said it would announce its policy decision the day after the special session. The central bank's fourth rate-setting Monetary Policy Committee meeting for the year had initially been slated to start on July 28, with the rate decision expected on July 30. At a Thursday event in the capital, Accra, the central bank governor said that members of the MPC had not discussed the policy rate at the emergency meeting. They met to "review numbers and also take stock of some of the developments in the markets to get a sense of what is going on and what our options are ahead of their meeting," Asiama said. The governor added that the Monetary Policy Committee will reconvene in 10 days to work on a policy statement. The Bank of Ghana last held a scheduled MPC meeting in May, where it opted to maintain the policy rate at 28.0%, maintaining its tight monetary policy as inflationary pressures continued to ease due to exchange rate stability and fiscal consolidation. Ghana's consumer price inflation slowed for the sixth month in a row to 13.7% in June, its lowest level since 2021, while the bellwether producer price inflation fell to 5.9% year-on-year in June compared with 10.2% the previous month. The finance minister is expected to present the cocoa-, gold-, and oil-producing West African nation's mid-year fiscal policy review on July 24.
Business Insider
15-07-2025
- Business
- Business Insider
Africa's largest gold producer to hedge prices as reserves hit $11.1 billion
Ghana is developing a plan to hedge its gold exports in a bid to safeguard the earnings that have strengthened its central bank's foreign reserves. Ghana plans to hedge its gold exports to stabilize revenue, strengthening its international reserves. The Bank of Ghana reports a rise in gold reserves to 32.99 tonnes as of June 2025, with significant annual export growth. Improved trade surpluses and fiscal policies have strengthened the Ghanaian cedi, making it a top-performing global currency in 2025. Ghana is developing a plan to hedge its gold exports in a bid to safeguard the earnings that have strengthened its central bank's foreign reserves, according to Bank of Ghana Governor Johnson Asiama. Speaking in Accra, Asiama noted that rising gold production and favourable prices have significantly boosted the country's gross international reserves, which now stand at $11.1 billion, enough to cover 4.8 months of imports. According to the Bank of Ghana, the country's gold reserves rose to 32.99 tonnes at the end of June 2025, up from 32.16 tonnes in May, reflecting a steady effort to build stronger foreign exchange buffers. Ghana's gold exports jumped 76% year-on-year to $5.2 billion in the first four months through April, helping to widen the country's trade surplus to $4.1 billion, up from $759 million in the same period last year, Bloomberg reported. This strong performance, combined with the government's ongoing fiscal consolidation efforts, has fueled a more than 40% rally in the cedi against the dollar in 2025, making it the second-best performing currency globally among those tracked by Bloomberg. Inflation has also eased, reaching a three-year low of 18.4% in May, down from 21.2% in April thanks to a stronger currency and reduced import costs. Regulatory framework for Crypto Bank of Ghana Governor Johnson Asiama also revealed that the country is finalizing a regulatory framework to oversee cryptocurrency activities. The move aims to bring digital asset platforms and exchanges under formal regulatory control, ensuring better oversight and investor protection. 'Crypto is here. The question is how do we manage it, not whether to ban it,' he said. ' The Bank is not anti-innovation. We only seek to ensure that digital financial products do not undermine confidence in the monetary system or facilitate illicit transactions.' With this move, Ghana is positioning itself among a small but growing number of African nations proactively tackling the regulation of digital currencies.
Business Insider
15-07-2025
- Business
- Business Insider
Ghana to regulate crypto exchanges
The Bank of Ghana (BoG) is putting the finishing touches on a comprehensive regulatory framework for cryptocurrency platforms and Virtual Asset Service Providers (VASPs), according to Governor Johnson Asiama. The Bank of Ghana (BoG) is finalizing a regulatory framework for cryptocurrency platforms and Virtual Asset Service Providers (VASPs). Governor Johnson Asiama stressed the importance of regulation amid the rise of digital financial technologies. The framework will align with anti-money laundering and financial stability mandates, ensuring robust oversight. Speaking at the Graphic Business/Stanbic Bank Breakfast Meeting, Asiama emphasised the urgency for clear rules amid the rise of digital financial technologies. 'Crypto is like the air we breathe—you can't stop it. So let's regulate it properly,' he stated. 'We are working on a framework that aligns with our anti-money laundering and financial stability mandates.' Coordination with key institutions To ensure a robust and collaborative regulatory environment, the BoG has been in close consultation with the Financial Intelligence Centre (FIC) and the Ministry of Finance. The forthcoming regulations will establish clear licensing requirements, operational standards, and safeguards against abuse for all crypto-related entities operating in Ghana. Regulating, not restricting Governor Asiama was clear in stating that the central bank is not opposed to innovation, but rather committed to preserving financial integrity. 'Crypto is here. The question is how do we manage it, not whether to ban it,' he said. ' The Bank is not anti-innovation. We only seek to ensure that digital financial products do not undermine confidence in the monetary system or facilitate illicit transactions.' Ghana takes a leading role in Africa's crypto policy With this move, Ghana is positioning itself among a small but growing number of African nations proactively tackling the regulation of digital currencies. The new framework aims to balance oversight with flexibility, ensuring that the fintech and crypto sectors can continue to innovate within a safe and supervised environment.
The Star
15-07-2025
- Business
- The Star
Ghana sees economic recovery backed by policy coordination: central bank
ACCRA, July 15 (Xinhua) -- Bank of Ghana Governor Johnson Asiama said Tuesday that the country's economy has been recovering, thanks to synchronized policy implementation between the central bank and the Ministry of Finance. Asiama said during a business breakfast meeting that the local cedi currency had appreciated by more than 42 percent between January and June, reversing the declines of the previous two years. According to him, gross international reserves stood at 11.1 billion U.S. dollars by the end of June, up from 8.98 billion dollars at the end of 2024, with a trade surplus of 4.14 billion dollars in the first four months of 2025, as exports grew by over 60 percent, mainly from gold, cocoa and crude oil. Moreover, the governor said the West African country's current account surplus improved significantly to 2.12 billion dollars in the first quarter of 2025, compared to just 66 million dollars a year earlier, as remittance inflows remained resilient. The governor said that the outcomes are more than just statistical improvements but mark a restoration of macroeconomic credibility. He added that the outcomes were due to the firm monetary policy stance of the Bank of Ghana, raising and holding the policy rate at 28 percent, complemented by the government's prudent fiscal management. Ghana's three-year reforms, supported by the International Monetary Fund, have passed four successive reviews, with the sovereign credit rating agency Fitch Ratings upgrading the country's long-term foreign-currency issuer default rating to "B-" from "restricted default" in June, following an upgrade by Standard and Poor's from "selective default" to "CCC+" in May.
