The course of to introduce Islamic Banking and Finance within the nation is heading in the right direction, Governor of the Financial institution of Ghana (BoG), Dr Johnson Pandit Asiama, has mentioned.
In accordance with him, the Professionalfessor John Gartchie Gatsi, who’s the Dean of the College of Cape Coast Enterprise College, is main a staff to assist drive the introduction of Islamic Banking in Ghana.
Responding to a query throughout the 124 Financial Coverage Committee Press Convention final Friday, Dr Asiama mentioned the BoG had inside capability to deal with Islamic Banking.
Islamic banking is outlined as a banking system which is in consonance with the spirit and ethos and worth system of Islam does avoids pursuits.
“Professor Gatsi is purposely right here to assist drive this introduction. Let me say that we’ve inside capability, we’ve some individuals who know what it takes and what to do. Nevertheless, we want a number of steps. The pinnacle of banking supervision has gone by lots of programmes, he’s very comfy with them,” the Governor said.
Dr Asiama added “The present banking regulation, which is Act 930, which we handed in 2016, gives for it. Nevertheless, there have been some lapses. For instance, the institution of the Sharia supervisory boards and the like. These weren’t captured in Act 930, so Prof Gatsi and his staff shall be doing a little work in that regard to make sure that we’re capable of operationalise Islamic financing, particularly Islamic banking. Keep in mind, it goes simply past Islamic Banking, there are different features of financing concerned. So we’re engaged on it, hopefully very quickly, after we are prepared, we will take into account licenses to ascertain an Islamic Financial institution.”
On the MPC assembly on Friday, the Committee in a unanimous determination maintained the coverage charge (the speed the central financial institution lend to business banks) at 28.0 per cent, citing stability within the Cedi, excessive stage of inflation and optimistic exterior place of the nation.
Additionally the MPC determined to amend the Dynamic Money Reserve Ratio (CRR) during which the CRR for all banks would now be maintained of their respective currencies, that means that overseas foreign money reserves for overseas foreign money deposits and home foreign money reserves for home foreign money deposits.
The coverage measure, the Governor mentioned would turn out to be efficient on June 5, 2025.
Bearing on inflation, the Governor mentioned the nation was heading in the right direction to returning to a single-digit inflation regime by the primary quarter of 2026.
In accordance with him, the inflation outlook for the 12 months remained beneficial, with the central financial institution taking agency coverage measures to steer inflation towards its medium-term goal band of 8 per cent ±2.
At the moment, the nation’s inflation charge stands at 21.2 per cent, however the BoG is projecting to convey it all the way down to 11.9 per cent by the top of the 12 months.
He mentioned the disinflation course of was progressing steadily, pushed by the relative stability of the cedi and a decent financial coverage stance.
“We’re heading in the right direction to satisfying our inflation goal and by the top of the primary quarter subsequent 12 months, we consider that we must always be capable to get again into our target band,” the Governor said.
The Governor mentioned the menace meals posed to inflation had much lessened because of focused interventions and measures introduced by the Minister of Finance within the nationwide funds.
“Meals inflation was an issue on the final MPC spherical, however we’re inspired by the measures that the Minister of Finance has indicated within the funds. Assuming these are applied, we count on that inflation shall be contained going ahead,” he mentioned.
Dr Asiama expressed optimism that, barring any unforeseen exterior or home shocks, the BoG would be capable to meet its inflation goal inside the set timeframe.
BY KINGSLEY ASARE
