The First Deputy Governor of the Bank of Ghana, Dr. Zakari Mumuni, has noted that a flexible exchange rate regime is very important in helping absorb external shocks in the current global economic environment.

Dr. Mumuni explained that this strategy has become necessary for countries such as Ghana because it helps reduce the transmission of foreign monetary conditions into domestic economies.

He added that "exchange-rate flexibility is therefore not merely a technical policy preference; it is an important shock absorber."

The First Deputy Governor of the Bank of Ghana made these remarks at the ACI FMA World Congress 2026 in Accra.

Dr. Mumuni also noted that “Another major issue relates to financial regulation and the growing role of non-bank financial institutions in global finance."

The Bank of Ghana has consistently advocated for a flexible exchange rate regime, arguing that it is important to allow a free-floating system where market forces of demand and supply determine exchange rates.

On tightening global financial conditions and their impact on countries such as Ghana, Dr. Mumuni observed that with rising interest rates and persistent inflationary pressures, “capital flows to emerging markets became more volatile and less predictable."

The First Deputy Governor noted that with these developments in the global economic environment, "emerging market countries like Ghana must not only attract capital during favourable periods but must also build the resilience necessary to withstand periods of financial tightening."

He also made a strong case for emerging market economies such as Ghana to look beyond traditional bank lending and explore capital markets and foreign direct investment opportunities.

"Looking ahead, emerging and frontier economies must strengthen their macroeconomics if they are to navigate an increasingly uncertain global environment successfully," Dr. Mumuni added.

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Flexible Exchange Rate is Critical for Absorbing External Shocks - First Deputy Governor

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