Forex Stability Must Translate into Jobs and Growth – Dr Asiama
Governor of the Bank of Ghana, Dr. Johnson Asiama, has laid out a bold economic transformation agenda, urging stakeholders to move beyond merely stabilizing the cedi and focus on leveraging forex gains to improve lives and grow businesses.
Delivering a major policy address titled “Leveraging Forex Gains for Economic Transformation”, at the Graphic Business/Stanbic Bank Breakfast Meeting themed: “Sustaining Forex Gains: Business and Economic Impact,” Dr. Asiama noted that a strong cedi alone is not enough, the real success lies in using that strength to drive investment, create jobs, and diversify Ghana’s economy.
“It is not enough to stabilize the cedi,” he said. “The real measure of success is whether we can translate forex stability into broad-based transformation that touches the lives of ordinary Ghanaians.”
Four Pillars for Transforming Forex Stability into National Development
- Strengthening FX Retention and Circularity
Dr. Asiama called for policies that encourage exporters to reinvest their foreign exchange earnings locally, through tax incentives, access to affordable credit, and preferential procurement schemes. He also stressed the need to enable formal SMEs to tap into global markets via fintech-driven digital trade tools, which would broaden Ghana’s forex base and reduce risk.
- Diversifying the Export Base
The Governor urged Ghana to move beyond raw commodity exports:
- Cocoa: Prioritize value-added processing and branded exports.
- Gold: Invest in local refining and bullion banking.
- Oil and Gas: Expand into petrochemicals.
He also called for renewed attention to non-traditional exports, including IT, digital services, creative arts, and education, which can provide sustainable forex and skilled jobs.
- Enhancing FX Market Efficiency
To reduce volatility and strengthen market confidence, Dr. Asiama said the central bank will expand its FX forward auctions and promote the development of hedging instruments such as swaps and forwards. These tools will help businesses manage risk and make long-term plans.
- Promoting Cedi Dominance and De-dollarization
To protect the cedi’s relevance in a digital economy, Dr. Asiama announced that:
- Enforcement of legal tender laws will be stepped up.
- The eCedi rollout will be integrated with everyday retail transactions.
- A new regulatory framework for cryptocurrency platforms (VASPs) will be introduced to bring digital assets under financial oversight.
A Vision of Inclusive Transformation
Dr. Asiama’s remarks signal a shift from macroeconomic stabilization toward inclusive growth. His focus on practical tools, local reinvestment, and job creation reflects a central bank under new leadership, one that aims to ensure that ordinary Ghanaians feel the benefits of a stable currency.
“Let the strength of the cedi be seen in new businesses, new jobs, and a stronger sense of opportunity in every region,” he concluded.
