A former Deputy Governor of the Bank of Ghana(BoG), Emmanuel Asiedu-Mantey has asked the newly appointed Governor of the BoG, Dr. Ernest Addison to prioritize the stabilization of cedi against the dollar, as well as address the issue of high inflation in the country.
Dr. Ernest Addison is expected to assume office on Monday April,3 2017 following the resignation of Dr. Abdul Nashiru Issahaku earlier this week.
In an interview with Citi Business News, Mr. Asiedu-Mantey said Dr. Addison is qualified for the job, hence must hit the ground running.
“Currently the country is running on a high level of inflation so if the mandate of the Central Bank is to maintain value of the currency then he should be addressing that,” he said.
He observed that Dr. Addison is coming into office at a time when the exchange rate regime is stable.Pointing out key areas to look at, Mr. Asiedu-Mantey stated that the new governor must continue to work at bringing inflation pressures down.
“The exchange rate fortunately has been stable so he should try and maintain that and keep it stable, so these should be the major things he should face, tackling inflation and ensuring that the currency is stable”
Linking it to other macroeconomic indicators, Mr. Asiedu-Mantey explained that a successful control of inflation and the exchange rate will positively impact the economy.
President appoints Dr. Addison
President Nana Addo Dankwa Akufo Addo appointed Dr. Ernest Kwamina Yedu Addison as Governor of the Bank of Ghana. His appointment is however subject to consultation with the Council of State.
A statement signed by the Director of Communications at the Presidency, Eugene Arhin said Dr. Addison’s appointment follows the resignation of Dr. Abdul Nashiru Issahaku effective Saturday, 1st April, 2017.
“In order not to have a vacuum at the top of such an important state institution, the President, in accordance with Article 183 (4) (a) of the constitution, has appointed Dr. Ernest Kwamina Yedu Addison as Governor of the Bank of Ghana, subject to consultation with the Council of State,” the statement said.
Dr. Issahaku on Monday indicated his resignation from office after almost a year in office. He assumed office in April 2016 following the early retirement of Dr. Henry Kofi Wampah and he has since embarked on a number of initiatives to improve the country’s monetary policy regime.
Under his administration, the Monetary Policy Committee of the Bank of Ghana reduced the policy rate twice; the latest being the 200 basis point reduction on Monday, 27th March, 2017.
Dr. Addison was until his appointment, the Lead Regional Economist of the African Development Bank, at its Southern African Resource Centre. From 2003 to 2011, he served as the Director of Research at the Bank of Ghana and was the Chief Economist of the West African Monetary Institute from 2001 to 2002.
Dr. Addison, an Economics graduate of the University of Ghana, Legon, holds an M.Phil in Economics and Politics from the University of Cambridge, England. He also holds a PhD in Economics from McGill University, Canada.
Speaking to Citi Business News on his expectations of the new Governor, Economist Dr. Lord Mensah stressed the need to work to maintain economic stability.
“The indicators are good on the ground so for anybody who takes over, I expect him to maintain them as such. Also, all the indicators such as inflation and interest rates are showing a downwards trend and then also interest rate has started coming down,” he said.
“In addition, a governor that comes in should be able to maintain our foreign exchange and of course we expect that as a governor that is your mandate and through the Central Bank, there are actions,” Dr. Mensah added.
The Minister of Monitoring and Evaluation, Dr. Anthony Akoto Osei also says he is confident Dr. Addison former stint with the Central Bank should reflect in his efficiencies as Governor.
“Dr. Addison will have to come and examine the current monetary policy situation and having been a Director of Research, I’m sure he can tell what new directions they might be taking but he is capable of doing that.”