Dr Zakari Mumuni, First Deputy Governor of the Financial institution of Ghana, identified {that a} versatile change charge regime is vital to absorbing exterior shocks within the present international financial atmosphere.
Dr Mumuni defined that this technique has change into essential for international locations corresponding to Ghana because it helps cut back the spillover of overseas foreign money situations into the home financial system.
He added: “Change charge flexibility is due to this fact not only a technical coverage precedence, however an necessary shock absorber.”
The First Deputy Governor of the Financial institution of Ghana mentioned this on the 2026 ACI FMA World Congress in Accra.
Dr. Mumuni additionally identified that “one other main situation pertains to monetary regulation and the growing function of non-bank monetary establishments in international finance.”
The Financial institution of Ghana has persistently advocated for a versatile change charge regime, arguing that it is very important enable a floating regime the place market forces of provide and demand decide change charges.
Commenting on the tightening international monetary state of affairs and its influence on international locations corresponding to Ghana, Dr. Mumuni mentioned rising rates of interest and sustained inflationary pressures have made “capital flows into rising markets extra risky and unpredictable.”
The First Deputy Governor identified that in response to those developments within the international financial atmosphere, “rising market economies like Ghana needn’t solely to draw capital throughout growth intervals, but additionally to construct the resilience essential to resist intervals of financial tightening.”
He additionally urged rising market economies corresponding to Ghana to transcend conventional financial institution lending and discover alternatives in capital markets and overseas direct funding.
“Wanting forward, rising and frontier economies might want to strengthen their macroeconomics if they’re to efficiently navigate an more and more unsure international atmosphere,” added Dr. Mumuni.
