BoG steering a more robust financial sector-President Akufo-Addo

President Nana Addo Dankwa Akufo-Addo has lauded the Bank of Ghana (BoG) for its steadfast commitment and effective execution of its mandate during the challenging economic landscape.

Speaking at the 2023 Bank of Ghana End of Year Cocktail, the President emphasized the importance of the central bank’s role in formulating and implementing policies that will contribute to Ghana’s economic transformation.

President Akufo-Addo urged BoG to dismiss any attempts at misinformation and maintain its focus on executing its duties.

He stressed the need for collaboration and policy coordination between the BoG and the Ministry of Finance, highlighting the significance of addressing current economic challenges with a united effort.

Commending the central bank’s performance, President Akufo-Addo acknowledged the BoG’s efficiency in currency management, liquidity provision, and serving as a dependable lender of last resort.

He specifically praised the BoG’s swift response to the economic impacts of the COVID-19 pandemic, citing the GH₵3 billion credit and stimulus package that revitalized industries, including pharmaceuticals, hospitality, and manufacturing.

Reflecting on the state of the banking industry in 2017, the President recalled the distress faced by many banks and financial institutions, attributing it to supervisory lapses.

He commended the BoG’s intervention, led by Dr. Ernest Addison, which restored stability, saved depositors’ funds, and paved the way for a more robust financial sector.

President Akufo-Addo acknowledged the challenges posed by the COVID-19 pandemic and the Russia-Ukraine conflict, emphasizing the corrective measures taken to restore stability.

He commended the BoG’s role in achieving macro-economic stability, evidenced by the containment of inflation and the sustained stability of the exchange rate.

The President endorsed the effective partnership between the BoG and the International Monetary Fund (IMF), emphasizing positive results from the government’s program with the fund.

He expressed confidence in the corporate governance measures implemented by the BoG to prevent future bank failures, ensuring a strong banking sector that aligns with the transformation agenda.

Addressing the BoG’s role in digitalizing the economy, President Akufo-Addo highlighted the transformation of Ghana’s payment system and the deepening of financial inclusion.

He acknowledged the international recognitions received by the central bank, including winning the Central Bank of the Year award twice and Governor Dr. Ernest Addison being adjudged Central Bank Governor of the Year.

President Akufo-Addo acknowledged the challenges faced by the BoG in the past year but commended the leadership and dedicated staff for overcoming difficulties and emerging even stronger.

Speaking at the event, Finance Minister Ken Ofori-Atta expressed a commitment to ongoing collaboration with BoG to ensure economic freedom and social mobility for all citizens.

He pledged to work together to overcome challenges and build a robust and transformed economy.

He highlighted the achievements of the past seven years, including the establishment of the Consolidated Bank of Ghana, the operationalization of the Development Bank, and the successful raising of over $10 billion in the Eurobond market.

Despite recent global challenges affecting the economy, Mr Ofori-Atta emphasized the strong collaborative spirit between the Ministry and the BoG  saying together, they have worked to reset the financial architecture, leading to economic growth, a more stable exchange rate, and softer interest rates.

He also noted the significant achievement of halving inflation, from 54.1% in December 2022 to 26.4% in November 2023.

“While it is welcome news that prices are no longer rising as quickly, we know many people continue to face severe cost of living pressures. So, we must stay the course to continue to get inflation back down to single digits as quickly as possible,” he stated.

Ofori-Atta acknowledged the challenges ahead but expressed confidence in prevailing and propelling Ghana toward a more prosperous future. He emphasized the importance of perseverance and unity on the road ahead and urged continued focus on the work that is vital not just for the present but also for the future of the country.

The Finance Minister highlighted the significance of ongoing efforts, citing the example of a previous debate about the competence of the Governor and the Bank’s leadership team. He concluded by stressing the importance of maintaining focus as the journey continues.

The event celebrated the achievements of the BoG in navigating a complex economic landscape and contributing to Ghana’s economic resilience.