Sustained credibility key to rebuilding Ghana’s debt market – BoG Governor

Bank of Ghana Governor, Dr Johnson Pandit Asiamah, has stated that the country's improving macroeconomic conditions are providing a stronger foundation for rebuilding investor confidence in the country’s debt capital market.

He said declining inflation, lower interest rates and improved macroeconomic stability were changing the conditions for investors and businesses to make long-term decisions.

Dr Asiamah, however, cautioned that maintaining stability and strengthening policy credibility would be critical to sustaining the renewed confidence in the market.

“Stability has reopened the door. Sustained credibility will determine how far the market can go," Dr Asiamah made the remarks in a social media post after speaking at the Debt Capital Market Conference in Accra on Thursday, August 27.

He said debt markets assess future prospects against past economic performance, making consistent policies and credible institutions important to restoring investor confidence.

The Governor said the Bank of Ghana’s priority remained preserving price stability, strengthening monetary policy transmission and supporting the development of a deeper and more efficient financial system.

He added that as confidence improves and the market moves beyond short-term instruments, Ghana has an opportunity to develop a stronger yield curve and deepen activity in the secondary market.

According to him, these developments could improve the flow of long-term capital to businesses and the wider economy.

“Ghana’s improving macroeconomic environment is creating a stronger foundation for rebuilding confidence in the debt capital market.”

He said sustaining the gains made in the macroeconomic environment would be essential to unlocking the full potential of Ghana’s debt capital market.