When Dr. Johnson Pandit Asiama mounted the podium at his maiden Governor’s Media Engagement, the moment carried more than ceremonial significance.
It marked the culmination of a bruising year of economic adjustment and the public accounting of a turnaround few would have confidently predicted at the start of 2025.
The year had not been kind. Households had endured painful cost-of-living pressures, businesses had struggled with uncertainty, and markets had tested the resolve of policymakers. Yet, by the close of December 2025, the macroeconomic picture had shifted decisively.
Inflation had collapsed to single digits, foreign exchange markets had regained order, external buffers had strengthened, and institutional credibility—once strained—was steadily being rebuilt.
At the centre of this turnaround was the Bank of Ghana (BoG), steering policy with restraint, discipline and an unwavering focus on stability.
A year that demanded tough choices
“The year 2025 was not an easy one,” Dr. Asiama acknowledged. “It required difficult judgments, careful sequencing of policy actions, and sustained discipline across institutions.”
Rather than seeking quick relief, the central bank opted for a measured path—one that accepted short-term discomfort in pursuit of durable stability.
This approach shaped every major policy decision taken during the year.
It was, in the Governor’s words, “a year of adjustment—for the economy, for markets, and for households.”
Inside the BoG’s policy philosophy
Before detailing outcomes, Dr. Asiama laid bare the principles guiding the central bank’s actions, offering rare insight into how policy is conceived and executed at the apex of Ghana’s financial system.
First, he stressed that decisions at the BoG are data-driven and forward-looking.
Policy, he noted, is not shaped by pressure, speculation or sentiment, but by evidence, risk assessment and medium-term outlooks for price and financial stability.
Second, the Bank prioritises stability over speed. In rebuilding credibility, the Governor cautioned, quick fixes often prove fragile.
The focus, therefore, has been on policies that can endure—even when politically or socially uncomfortable.
Third, central banking is institutional, not personal. Decisions are made collectively through structured frameworks, robust analysis and professional debate, insulating policy from individual discretion.
“These principles guided our actions in 2025 and will continue to guide us in the year ahead,” he said.
Restoring macroeconomic stability
At the heart of the BoG’s 2025 agenda was the urgent need to tame inflation and re-anchor expectations.
At the close of 2024, inflation stood at a punishing 23.8%, eroding incomes and distorting economic decision-making.
Through disciplined monetary tightening, firm liquidity management and consistent policy communication, the Bank engineered a steady and sustained disinflation.
By December 2025, inflation had fallen sharply to 5.4%, with underlying price pressures easing throughout the year.
The Governor attributed this outcome to policy consistency and credibility rather than chance.
Markets, he noted, responded not just to interest rates but to confidence that the policy framework itself had been restored.
Rebuilding confidence in the banking sector
Beyond headline inflation, the Bank of Ghana devoted significant attention to strengthening the resilience of the banking system—still bearing scars from earlier financial sector clean-ups and macroeconomic shocks.
In 2025, supervisory reforms were deepened to improve risk identification and mitigation.
Stress testing frameworks were enhanced, recovery planning requirements strengthened, and refinements introduced into the risk-based supervisory regime.
Equally important was the tone of engagement.
The Bank intensified dialogue with regulated institutions and deepened collaboration with fellow regulators, reinforcing a culture of discipline, transparency and early intervention.
The result, according to the BoG, is a banking system better positioned to absorb shocks and support sustainable economic recovery.
Capital markets and governance reforms
The turnaround agenda extended beyond banks.
The central bank also played a quiet but pivotal role in advancing capital market development, particularly efforts to encourage bank listings.
Working with market regulators and stakeholders, the BoG supported initiatives aimed at strengthening governance, transparency and market discipline through greater use of public markets.
While progress remains incremental, officials see this as a necessary step in deepening Ghana’s financial ecosystem and reducing overreliance on traditional intermediation channels.
Order returns to the fx market
One of the most visible achievements of 2025 was the restoration of order in the foreign exchange market, long plagued by opacity, distortions and speculative behaviour.
The Bank implemented a rules-based FX auction framework, strengthened oversight, improved reporting mechanisms and enforced compliance more aggressively to curb abuse.
These reforms improved price discovery, reduced volatility and gradually restored confidence among market participants.
While challenges persist, the FX market entered 2026 on a far more stable and predictable footing than it had a year earlier.
Gold as a strategic stabiliser
The BoG’s gold programmes emerged as a key stabilising tool during the year.
Through the Domestic Gold Purchase Programme, the Bank bolstered external buffers, moderated FX pressures and improved confidence in Ghana’s external position.
By the end of 2025, gross international reserves had risen to over US$13.8 billion—equivalent to about 5.7 months of import cover.
While acknowledging that these programmes carried costs, Dr. Asiama emphasised their strategic value, describing them as deliberate interventions to enhance macroeconomic and external resilience rather than short-term fixes.
Strengthening the legal and institutional framework
On the legislative front, 2025 delivered a major institutional milestone.
Parliament passed the Bank of Ghana Amendments Bill, 2025, reinforcing central bank independence, strengthening accountability and tightening safeguards around monetary financing of government.
For the BoG, these reforms represent a critical alignment of Ghana’s central banking framework with international best practice, reducing vulnerabilities that had undermined credibility in the past.
Payments, digital finance and the future
Progress was also recorded in payments and digital finance. Through the Ghana Interbank Payment and Settlement Systems (GHIPSS), payment infrastructure was modernised, instant payment capabilities expanded and interoperability across platforms enhanced.
The passage of the Virtual Asset Services Bill marked another significant step, laying the foundation for a regulated, orderly approach to emerging digital asset activities—balancing innovation with consumer protection and financial stability.
A fragile but hard-won stability
Taken together, the BoG’s actions in 2025 restored macroeconomic stability, strengthened institutional coordination and placed the economy on a firmer footing.
“These gains were hard-won,” the Governor cautioned, “and achieved through discipline, restraint, and institutional effort.”
They also carry a responsibility—to protect stability, act with humility and remain faithful to the public trust.
2026: From stabilisation to consolidation
With stability largely restored, the focus in 2026 shifts to consolidation and discipline.
Monetary policy will remain measured and forward-looking, anchored firmly on price stability.
The aim, Dr. Asiama said, is continuity—not surprise—reinforcing credibility through consistent signalling and liquidity management.
In the financial sector, supervisory attention will tilt further toward prevention rather than cure, with greater emphasis on governance quality, capital planning and early risk detection.
In financial markets, reforms introduced in 2025 will be deepened to support orderly price discovery and disciplined conduct across FX and money markets.
In payments and digital finance, oversight will intensify as usage expands, ensuring resilience, consumer protection and sound governance within clear regulatory boundaries.
National strategic initiatives, including gold-related programmes, will transition toward more sustainable institutional and fiscal arrangements, ensuring shared responsibility and long-term viability.
Across all fronts, the watchword for 2026 is quality over quantity—strong institutions, disciplined markets and policies that endure.
The human face of central banking
In closing, Dr. Asiama reminded the nation that behind every policy decision are real people—households managing costs, businesses navigating uncertainty and workers worried about jobs and incomes.
Trade-offs, he acknowledged, are unavoidable.
“Our responsibility,” he said, “is to act in the long-term public interest, even when the short-term choices are difficult.”
In a year defined by restraint rather than rhetoric, the Bank of Ghana’s 2025 performance suggests that credibility, once lost, can indeed be rebuilt—patiently, deliberately, and with discipline.
