Amidst intermittent foreign exchange shortages at the banks, the Bank of Ghana has taken steps to focus on improving the efficiency of the forex market and ensuring banks have sufficient liquidity to meet the needs of businesses and households.
In a meeting with the Chief Executives of commercial banks in Accra, the Governor of the Bank of Ghana also hinted at further easing in the monetary space as market conditions improve.
“There is hope for further easing,” Dr. Johnson P. Asiama said, noting that any adjustment to the rate will be done cautiously to protect the gains made in macroeconomic stability.
Meanwhile, the World Bank has urged the Bank of Ghana (BoG) to avoid excessive foreign exchange (FX) interventions, warning that such actions could disrupt market balance and weaken economic resilience.
As contained in the latest Ghana Economic Update report launched in Accra last week, the World Bank emphasised the need for the central bank to allow market forces to have greater influence over exchange rate movements.
The report also called for the swift completion of the recapitalisation of all financial institutions in line with the Financial Sector Strengthening Strategy.
In addition, it recommended a comprehensive asset quality review to address high non-performing loans (NPLs), providing banks with clear action plans to restore financial stability.
“These measures will help strengthen balance sheets, rebuild confidence, and position the banking sector to better support Ghana’s economic recovery,” the World Bank stated.
The recommendations come as Ghana presses ahead with reforms under its IMF-supported programme aimed at restoring macroeconomic stability and fostering sustainable growth
The Central Bank recently cut its policy rate from 28 percent to 25 percent during the last Monetary Policy Committee meeting, citing positive macroeconomic indicators.
Inflation has fallen steadily in recent months, aided by the relative stability of the cedi and improved foreign reserves.
Analysts believe that a future policy rate cut could further lower borrowing costs, boost private sector lending, and help sustain Ghana’s economic recovery, particularly in sectors that rely heavily on credit access.
By Adnan Adams Mohammed
