The Bank of Ghana (BoG) has the internal expertise to support the introduction of Islamic banking in Ghana, according to its Governor, Dr. Johnson Asiama.
Speaking at the 124th Monetary Policy Committee (MPC) press conference on Friday, May 24, Dr. Asiama said the central bank is well-prepared to implement Islamic financial services.
“We have internal capacity,” he stated. “Our Head of Banking Supervision, Mr. Ismail Adam, has undergone intensive training in Islamic finance. He understands what needs to be done.”
He also pointed to the role of Professor John Gartchie Gatsi, recently appointed as an advisor to the MPC. Prof. Gatsi is helping to develop frameworks for Islamic banking operations.
Islamic banking aligns with Islamic Shariah law, emphasizing ethical finance and interest-free transactions. While Ghana’s Banking Act 930 of 2016 supports the concept, it lacks specific provisions like Sharia supervisory boards. Dr. Asiama confirmed that Prof. Gatsi’s team is working to address these gaps.
“We’re taking steps to ensure full operational readiness,” he added. “When ready, we will consider issuing licenses to Islamic banks.”
Cedi Gains to Impact Prices
Dr. Asiama also assured that Ghanaians will soon see price reductions as the cedi strengthens.
“Prices will adjust as long as competition exists,” he said. “Retailers who bought goods at a higher rate will take time, but changes are coming.”
He attributed the cedi’s appreciation to market forces, not central bank intervention. “We are not using reserves to prop up the cedi,” he clarified. “Strong policy, rising reserves, and improved market sentiment are driving the recovery.”
As of May 21, 2025, the cedi had gained:
- 24.1% against the US dollar
- 16.2% against the British pound
- 14.1% against the euro
Inflation, Policy Rate & Economic Outlook
Headline inflation has declined for four consecutive months, driven by both food and non-food prices. BoG maintained the policy rate at 28% to continue the disinflation process.
Dr. Asiama cited improved external performance, including:
- A $2.1 billion current account surplus in Q1 2025
- Gross international reserves at $10.7 billion, equal to 4.7 months of imports
He expects inflation to ease faster than projected, possibly reaching the medium-term target by Q1 2026, barring external shocks.
