Asiama Wants Agile Central Bank to Fight Dollarisation
In a recent interview, Bank of Ghana Governor Dr. Ernest Asiama said the central bank will become more agile to tackle emerging risks such as crypto and to curb dollarisation, outlining legislative reforms and balance‑sheet rebuilding.
Speaking with IMF Africa Director Abebe Selassie, the governor explained that rapid advances in financial technology and the rise of digital currencies pose real challenges for monetary policy.
“My vision is a central bank with the manpower, agility, and resilience to manage future risks — crypto today, something else tomorrow,” Dr. Asiama said.
He added, “My mandate is clear: achieve price and financial stability, and I believe we’re on course. But two priorities stand out. First, tackling dollarisation. I’ve seen this challenge for decades, and making the cedi the sole legal tender is critical for effective monetary policy. My second priority is to build an agile central bank ready for emerging risks.”
To preserve the bank’s independence, the governor announced legislative reforms that prohibit central‑bank financing of the government and clearly define emergency powers.
“The impact on banks from sovereign exposure has been significant and should never happen again. But corporate bond activity is picking up, and we’re trying to list more banks on the stock exchange to attract long‑term capital and strengthen equities,” he noted.
He also warned that domestic debt restructuring hit the central bank’s balance sheet hard, making medium‑term rebuilding a priority.
Regarding foreign‑exchange policy, Dr. Asiama said the Bank of Ghana follows a managed‑float system to smooth volatility rather than to dominate the market.
“Recent intervention was due to large payments to independent power producers, bondholders, and declining remittances caused by currency appreciation,” he explained.
He highlighted that mining inflows now flow through banks, allowing unused foreign‑exchange offers to be added to reserves, and announced plans to increase local processing of commodities such as gold, oil and cocoa.
The governor’s roadmap aims to strengthen the cedi, protect the financial system from external shocks, and position Ghana’s central bank to respond swiftly to any future economic challenge.
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