The Bank of Ghana Faces Scrutiny and Transformation
The Bank of Ghana, during the period from 2020 to 2024, encountered a wave of public criticism and negative media attention. This was largely due to several high-profile issues that raised concerns about its operations and governance. Two major areas of concern were the perceived lack of transparency and accountability, especially in relation to Ghana’s economic challenges, and the controversy surrounding the escalating costs of the new headquarters.
Financial reports from this period revealed substantial losses, with an operating loss of GH¢9.49 billion recorded in 2024. These losses were primarily attributed to expenses related to Open Market Operations and exchange rate losses. Some critics linked these financial difficulties to what they described as “illegal” cash printing, which referred to the bank’s alleged practice of providing monetary support to the government.
The continuous depreciation of the Ghanaian cedi against major international currencies, particularly the US dollar, became a focal point for public dissatisfaction. Efforts by the Bank of Ghana to stabilize the currency, including injecting billions into the forex market, were often viewed as ineffective and temporary solutions.
The banking sector cleanup between 2017 and 2020, while necessary for stabilizing the financial system, faced scrutiny due to the lack of transparency in its implementation and the long-term effects on the economy. However, the most prominent and widely criticized issue was the construction of the Bank of Ghana’s new head office in Accra. This project, initially budgeted at US$81.8 million in 2020, saw its cost balloon to over US$250 million by late 2024. The dramatic increase in costs, particularly in a dollar-denominated contract, sparked public outrage and raised serious questions about fiscal management and oversight.
The Bank of Ghana was heavily criticized for its lack of transparency regarding the final cost and procurement process, leading to accusations of fiscal mismanagement and a “lawless” approach to governance.
New Leadership and Strategic Initiatives
Since being nominated by President John Dramani Mahama and taking office in February 2025, Dr. Johnson Asiama has quickly begun to implement his agenda as the Governor of the Bank of Ghana. His leadership is characterized by a focus on transparency, financial stability, and supporting economic growth. Dr. Asiama has emphasized clear communication regarding the Bank’s decisions, proposing to publish the voting outcomes of the Monetary Policy Committee (MPC) and enhancing the clarity of policy statements.
His six key priority areas include addressing exchange rate volatility, controlling inflation, and strengthening the financial sector. He has announced plans for strategic interventions such as a new foreign exchange law and targeted market operations to improve reserves management and curb forex leakages. Additionally, the Bank of Ghana is deepening its participation in the Pan African Payment and Settlement System (PAPSS) to enable local currency trade across Africa, reducing reliance on the US dollar.
A key focus is also on the stability of the banking sector. The Governor is working to address the issue of non-performing loans (NPLs) and weak risk management practices. The Bank is also updating the Banks and Specialized Deposit-Taking Institutions Act to enhance its resolution framework for distressed institutions. The financial sector is also seeing a push for enhanced cybersecurity and strengthened capital adequacy requirements.
Dr. Asiama is embracing a digital future and financial inclusion. Under his leadership, the Bank of Ghana is implementing a digital strategy to modernize its operations and expand financial access. This involves leveraging financial technology (fintech) and mobile banking to serve underserved communities.
Fiscal Reforms and Economic Stability
Following his appointment as Minister for Finance in early 2025, Dr. Cassiel Ato Baah Forson has been at the forefront of Ghana’s efforts to achieve economic stabilization and long-term fiscal sustainability. Building on his extensive experience, he has introduced a series of strategic policies and reforms focused on fiscal discipline and accountability, stabilizing the cedi, and promoting local industry.
One of the central pillars of Dr. Forson’s work has been a strong push for fiscal discipline and transparency. He has outlined a comprehensive plan to address Ghana’s large accumulation of government payables, initiating a government-wide audit of all outstanding commitments and payables. His ministry has also introduced amendments to the Public Financial Management (PFM) Act, designed to prevent unapproved expenditures by mandating prior commitment authorization from the Ministry of Finance.
He has established an Independent Fiscal Council to monitor adherence to new fiscal rules, including targets for the debt-to-GDP ratio and a required annual primary surplus. This approach aims to restore confidence in Ghana’s financial management system and reinforce accountability across all government agencies.
Positive Macroeconomic Outcomes
The combined efforts of Dr. Ato Forson and Dr. Johnson Asiama have led to positive macroeconomic performances just eight months into His Excellency John Mahama’s second term. The economy showed a strong start to the year, with a Q1 2025 GDP growth of 5.3%, surpassing previous forecasts. Headline inflation has fallen significantly, from 23.8% in December 2024 to 12.1% by July 2025. The Ghanaian cedi has experienced a remarkable turnaround, appreciating against the US dollar.
The Bank of Ghana implemented a historic 300 basis points cut to its monetary policy rate in July 2025, bringing it down to 25%. This move signals confidence in the disinflationary trend and reflects the success of the Bank’s tight monetary policy.
While economic performance has been impressive, there remains much work to be done to achieve sustainable economic inclusion for Ghanaians. Government should aggressively promote its 24 Hour Plus Economic programmes to diversify the economy, foster entrepreneurship, and create jobs. The Ministry of Finance should also take advantage of the good works of the Ghana Gold Board to introduce new sophisticated financial products, enhancing the maturity and attractiveness of Ghana’s capital market.
These steps can help improve the living conditions of Ghanaians and ensure a more prosperous future for the nation.
