BoG engages banks on FX auctions and liquidity concerns

Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has announced plans to engage the Ghana Association of Banks in the coming days to address key concerns related to forward foreign exchange auctions and overall market liquidity.

Speaking during a meeting with CEOs of commercial banks in Accra, Dr. Asiama said the upcoming discussions will aim to enhance the efficiency of Ghana’s foreign exchange market and ensure banks are well-positioned to meet the liquidity needs of businesses and households.

“There is hope for further easing,” the Governor remarked, suggesting that a further reduction in the policy rate could be on the table provided inflation continues to decline and market stability holds.

He emphasised, however, that any such move would be carefully calibrated to preserve the gains made in macroeconomic stability.

The BoG recently lowered its policy rate from 28% to 25% during its latest Monetary Policy Committee (MPC) meeting, citing improvements in key macroeconomic indicators.

Ghana’s inflation has continued a steady decline, supported by a more stable cedi and stronger foreign reserves.

Analysts suggest that a further rate cut could reduce borrowing costs, increase private sector lending, and accelerate the country’s economic recovery, especially in credit-dependent sectors.