The Bank of Ghana has outlined a series of strategic measures aimed at gradually strengthening its financial position over the medium term, reinforcing the central bank’s broader efforts to stabilise the Ghanaian economy.

Governor Dr Johnson Asiama told the Parliamentary Committee on Economy and Development on Monday, March 9, 2026, that the central bank’s strategy focuses on boosting income, managing costs, and enhancing the resilience of its reserves.

“The Bank’s income position is expected to improve as its earning assets gradually reprice over time. As domestic securities and foreign reserve assets mature and are replaced, they will be reinvested at prevailing market yields. This natural portfolio turnover will support a gradual recovery in investment income,” Dr Asiama told lawmakers.

Bank of Ghana rebalances gold reserves to strengthen financial stability

He also highlighted that enhancements in reserve asset management are expected to boost investment income over time.

“As global interest rate conditions evolve and the Bank’s reserve portfolio is actively managed, returns on foreign assets are expected to improve, strengthening the Bank’s income position,” he added.

The Governor explained that cost pressures linked to liquidity management are likely to ease as macroeconomic conditions stabilise.

“As inflation declines and policy interest rates gradually normalise, the interest expense associated with absorbing excess liquidity in the banking system will also decline naturally,” he said.

Dr Asiama further outlined improvements in the Domestic Gold Purchase Programme, which he said have already reduced the associated cost structure.

“These improvements are expected to flow through more fully to the Bank’s financial position in 2026 and beyond. As the programme has evolved into an important national initiative supporting reserve accumulation and external stability, the Government of Ghana will also partner with the Bank in carrying a portion of the associated costs going forward,” he explained.

The BoG Governor added that stabilisation of the exchange rate will help reduce accounting costs linked to gold purchases and limit valuation swings on foreign currency assets.

“While exchange rate movements can produce accounting valuation effects in the Bank’s financial statements, a more stable exchange rate environment helps reduce the magnitude of such effects over time,” he noted.

Dr Asiama said these measures are expected to progressively improve the central bank’s financial position over the medium term.

MA