Remittances key to stabilizing Ghana’s forex reserves – BoG deputy Governor

Remittance inflows are playing an increasingly vital role in stabilizing Ghana’s foreign exchange reserves and supporting the broader economy, according to the First Deputy Governor of the Bank of Ghana, Dr. Zakari Mumuni.

Addressing stakeholders on the state of the financial sector, Dr. Mumuni underscored the importance of a robust and trustworthy financial system in attracting diaspora investments and fostering long-term economic development.

“Remittance inflows are becoming a critical element in our FX build-up. With the right systems and reforms, we can enhance their value and attract more structured investments from the diaspora,” he stated.

He noted that beyond boosting Ghana’s forex reserves, remittances provide an avenue for deepening financial inclusion and investment, particularly when underpinned by secure digital systems and enabling regulatory frameworks.

Dr. Mumuni outlined the central bank’s strategy to reinforce the financial ecosystem. This includes regulatory reforms, enhanced supervisory practices, improved cybersecurity measures, and the introduction of sustainable banking principles.

“To support secure digital financial transactions, the Bank introduced a directive on Cyber and Information Security. This initiative is essential for safeguarding customer data and enhancing trust in Ghana’s fast-growing digital banking landscape,” Dr. Mumuni noted.

He further highlighted the Bank’s commitment to sustainable finance. The adoption of environmentally and socially responsible lending guidelines, he said, reflects the regulator’s intent to align banking practices with Ghana’s national development goals while safeguarding communities and the environment.

Reviewing the current state of the financial sector, Dr. Mumuni observed that banks had continued to show resilience in 2025, with growth in total assets and positive trends in key financial indicators.

However, he acknowledged that non-performing loans (NPLs) remain a persistent concern.

To address this, he revealed that the Bank of Ghana will introduce a new directive aimed at improving asset quality and credit discipline across the sector.

“The proposed measures include mandatory write-offs of fully provisioned loans with no realistic recovery prospects (excluding related-party exposures), stricter rules on loan restructuring requiring proof of sustained repayment before reclassification, enforcing timely recovery of collateral, especially for overdue loans, strengthening credit risk governance, and requiring demonstrable risk management effectiveness,” he explained.

“These measures are designed to restore asset quality, encourage prudent lending, and enhance the overall resilience of the financial sector,” Dr. Mumuni emphasized.

He also pointed to the Bank’s efforts to promote innovation across the financial system by enabling both traditional banks and fintech companies to design inclusive, efficient, and accessible financial products and services.

On the diaspora front, Dr. Mumuni disclosed that the central bank is working on a series of reforms to streamline remittance flows. These will include revised foreign exchange rules aimed at reducing transaction costs, expediting transfers, and increasing transparency.

“The central bank is committed to developing innovative financial products tailored to diaspora needs, whether it’s settlement, home ownership, or long-term investments,” he added.