Ghana’s central bank has pledged to maintain its policy consistency to achieve the macroeconomic targets set in the economic reforms, an official has said.
Philip Abradu-Otoo, director of research at the Bank of Ghana, made this pledge during a media briefing on Wednesday about the bank’s operations in the 2022 fiscal year, saying achieving the core mandate of stable inflation and foreign exchange would be pursued vigorously to restore the country’s attractiveness to investors.
Abradu-Otoo said the central bank remained committed to ensuring the stability of the country’s financial market and the economy, despite the pressure of the debt issues.
“We have retained our policy solvency and will continue to fight inflation as we deploy our resources to ensure price stability and economic growth,” the official said.
Despite the impact of the debt restructuring on the bank’s financial standing, he said the efforts to rebuild reserves have started to yield results, and the central bank is as robust as ever.
“We will work hard to restore confidence in the economy. It will take some time, and we have given ourselves about two or three years for the debt exchange program to complete and inflation to return to acceptable levels,” he said.
As an important exporter of cocoa, gold and crude oil in West Africa, Ghana started to implement a 3-billion-U.S. dollar economic reform program with the support of the International Monetary Fund (IMF) in May to rescue the economy from severe debt overhang, soaring inflation, continuous currency depreciation and rising cost of living for citizens.
Under the three-year program, the Bank of Ghana is to withhold budget financing from the government and concentrate its efforts on achieving price stability.