Stability Has Reopened Door to Debt Market – BoG Governor

Governor of the Bank of Ghana, Dr Johnson Asiama, says Ghana’s improving macroeconomic environment is creating a stronger foundation for rebuilding confidence in the debt capital market.

In a Facebook post, Dr Asiama said declining inflation, lower interest rates and improved macroeconomic stability are changing the conditions under which investors and businesses make long-term decisions.

“Declining inflation, lower interest rates and improved macroeconomic stability are changing the conditions under which investors and businesses make long-term decisions. But stability must be sustained. Debt markets price the future with a close eye on the past, and confidence returns through consistent policy and credible institutions,” he said.

He stated that for the Bank of Ghana, the priority remains clear: to preserve price stability, strengthen monetary policy transmission and support the conditions for a deeper and more efficient financial system.

“For the Bank of Ghana, the priority remains clear: preserve price stability, strengthen monetary policy transmission and support the conditions for a deeper and more efficient financial system,” he wrote.

The Governor added that as confidence strengthens and the market extends beyond short-term instruments, the opportunity is to build a stronger yield curve, deepen secondary-market activity and ultimately improve the flow of long-term capital to the wider economy.

“As confidence strengthens and the market extends beyond short-term instruments, the opportunity is to build a stronger yield curve, deepen secondary-market activity and ultimately improve the flow of long-term capital to the wider economy,” he said.

“Stability has reopened the door. Sustained credibility will determine how far the market can go,” Dr Asiama added.

Click to read more: https://opemsuo.com/author/hajara-fuseini/