The Bank of Ghana (BoG) expects inflation to decline in the coming months, citing the impact of tight monetary policy measures and improved macroeconomic conditions.
Speaking at the Ghana Diaspora Investment Forum in Accra, First Deputy Governor Dr. Zakari Mumuni said headline inflation is likely to fall towards the end-of-year target of 12%, supported by ongoing policy efforts.
“Headline inflation is expected to trend further down towards the end-year target of 12%, supported by a tight monetary policy stance,” Dr. Mumuni said.
He also noted that Ghana’s macroeconomic outlook is steadily improving, laying the groundwork for a more business-friendly environment and continued economic growth in 2025.
“Macroeconomic fundamentals are projected to improve further to create a business-friendly environment for investors, while growth is projected to remain strong this year,” he added.
Remittances: A Key Pillar of Forex Reserves and Cedi Stability
Dr. Mumuni emphasized the vital role of remittance inflows in building up Ghana’s foreign exchange reserves and stabilizing the local currency. He said the Bank of Ghana is implementing reforms to tighten foreign exchange rules on remittances and lower transaction costs.
“The Bank of Ghana, on its part, has also provided a layer of security and transparency and encouraged the diaspora communities to channel more funds to Ghana.”
The Central Bank, he added, is working on innovative financial solutions tailored to the diaspora to support settlement, savings, and investment activities.
Strengthening the Banking Sector for Diaspora Engagement
To boost confidence in the financial system and attract more diaspora investment, the BoG has instituted several reforms in the banking sector. These include developing tailored financial products, leveraging digital platforms, and addressing key investment barriers.
Dr. Mumuni stressed the Central Bank’s role in mobilising diaspora capital for national development.
“The Bank of Ghana plays a key role in mobilising diaspora capital by offering tailored financial products, leveraging digital financial platforms, and addressing barriers to investment,” he said.
Expanding Payment Infrastructure and Digital Innovation
The Bank of Ghana is also taking steps to strengthen the national payment system, with a focus on supporting cross-border transactions and facilitating diaspora investments.
Dr. Mumuni cited the Payment Systems and Services Act, 2019 (Act 987) as a major milestone in Ghana’s digitalisation journey, noting that it has modernised and expanded the country's payment ecosystem.
Looking ahead, the Central Bank is placing a strong emphasis on innovation, including the regulation of digital assets and credit delivery.
“The Central Bank is looking forward to developing emerging innovations such as digital assets to expand investment options.”
He added that the BoG is working on guidelines for the regulation of digital credit delivery, aiming to strike a balance between technological advancement and financial stability.
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