The Bank of Ghana expects inflation to trend downwards in the coming months because of the tight monetary policy measures being implemented.

First Deputy Governor of the Bank of Ghana, Dr. Zakari Mumuni, disclosed this at the Ghana Diaspora Investment Forum in Accra.

He said “Headline inflation is expected to trend further down towards to the end-year target of 12%, supported by a tight monetary policy stance.”

Dr. Zakari also highlighted the improved macroeconomic environment that will aid this reduction in the inflation rate in the coming months.

“Macroeconomic fundamentals are projected to improve further to create a business-friendly environment for investors, while, growth is projected to remain strong in the year”, he added.

Role of Remittance in Reserve Build-up and Cedi’s Stability

The First Deputy Governor disclosed that the remittance inflows have become a critical component of Ghana’s forex build-up and it is expected that the ongoing reforms would tighten the foreign exchange rules regarding remittances to help lower 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 First Deputy Governor assured.

Dr. Zakari Mumuni promised that the Central Bank will continue to promote the development of innovative diaspora tailored financial solutions and services to facilitate their settlement and investment plans in the country.

Strengthening Banking Sector to Attract Diaspora Investments

Dr. Mumuni revealed that the necessary measures have been instituted to improve banking sector confidence and aid the attraction of the diaspora.

According to him, this is because the role the Central Bank plays in mobilising diaspora capital for development by “offering tailored financial products, leveraging digital financial platforms, and addressing barriers to investment”.

The First Deputy Governor also announced that the Bank of Ghana will strengthen the payment systems to aid in attracting diaspora investments.

He also cited the issuance of various regulations and guidelines that have been carried out to support the payment ecosystems, including the enactment of the comprehensive Payment Systems and Services Act, 2019 (Act 987), which has revitalised the digitalization agenda.

Innovation and Central Regulations 

Dr. Mumuni Zakari assured the market that innovation will play a key role in regulating the banking sector, adding that “the Central Bank is looking forward to developing emerging innovations such as digital assets to expand investment options”.

“The Bank has initiated steps to develop guidelines for the regulation of Digital Credit delivery in Ghana to provide an optimal balance between innovation and financial stability,” he added.