The Bank of Ghana (BoG) has outlined a strategy to boost the country’s real economy by making loans cheaper for key businesses, upgrading digital payments, and keeping the cedi stable.
According to the Central Bank Governor, this plan aims to back wider national efforts to transform the economy. The main goal is to make it much easier for farmers, manufacturers, small and medium enterprises (SMEs), and exporters to get the bank loans they need to grow, he explained at his last monetary policy press conference.
To support business growth and help power the national 24-Hour Economy initiative, the BoG is focusing on making digital payments faster and safer, bringing more people into the banking system, and encouraging green, sustainable financing. Together, these steps are expected to attract private investment, create new jobs, and make Ghanaian products more competitive.
Making Loans Cheaper for Businesses
To manage money flow across banks, the Governor pointed to recent changes in the Cash Reserve Ratio (CRR)—the amount of cash banks must hold with the central bank. This move helps control inflation while giving the BoG better oversight of money in the system.
Importantly, the Central Bank wants to make sure its policy decisions actually reach real businesses. When the BoG cuts interest rates, commercial banks should pass those savings down by lowering their own loan rates for private businesses.
“The Bank seeks to complement fiscal policy with initiatives that will strengthen monetary policy transmission to impact lending rates to boost private sector activity, deepen financial markets, and improve resilience to external shocks,” the Governor noted.
Keeping the Cedi Stable
On managing foreign exchange and keeping national debt under control, the BoG promised to step into the market whenever necessary to protect the cedi from sudden drops.
A key part of this defense is the BoG’s ongoing Domestic Gold Purchase Programme. By buying locally mined gold to build up Ghana’s official reserves, the Central Bank creates a reliable financial shield that protects the cedi during global market shocks.
Moving forward, the Central Bank stressed that its decisions will be based strictly on economic data and changing market conditions. The Governor reaffirmed that the BoG will work hand-in-hand with the Ministry of Finance to keep prices low and the overall economy stable.
