Stable cedi, falling inflation creating room for stronger credit growth – BoG Governor
The Governor of the Bank of Ghana (BoG), Dr Johnson Asiama, says the relative stability of the exchange rate is among the key improvements in Ghana’s economic environment, alongside a significant decline in inflation and easing financial conditions.
Dr Johnson Asiama, Governor of the Bank of Ghana, has highlighted that stable macroeconomic conditions, including a relatively stable exchange rate and declining inflation, are paving the way for stronger credit growth in the economy. Speaking at an event with bank CEOs in Accra on August 12, Asiama stated that a more favorable environment for businesses and financial institutions has emerged due to the stable currency, easing financial conditions, and compressed interest margins.
He noted that these improvements have already led to a rebound in credit creation. However, Asiama acknowledged that access to finance remains a significant challenge for many small and medium-sized enterprises, particularly those in the agricultural sector. He urged banks to capitalize on the improved economic environment to expand lending to productive sectors.
Asiama also suggested that financial institutions should develop credit products tailored to the cash-flow patterns of businesses, especially those in agriculture, to improve access to credit and help banks manage risks more effectively. He emphasized that the benefits of improved macroeconomic conditions must ultimately lead to increased productive activity, business expansion, and job creation.
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