Ghana central bank governor Issahaku says resigns

3/29/2017 9:32:16 PM

Issahaku spent less than a year in the role. 

The governor of Ghana's central bank, Nashiru Issahaku, resigned on Wednesday for personal reasons, he told Reuters, just as a new government seeks to stabilise the West African country's finances.

Former President John Mahama appointed Issahaku in April 2016 but Mahama lost an election in December, creating uncertainty over the governor's position under the new government of President Nana Akufo-Addo.

Issahaku was at the centre of efforts by authorities to shore up national finances including reducing inflation, public debt and the budget deficit under a three-year $918 million International Monetary Fund programme.

The fiscal problems coupled with a decline in global prices for Ghana's exports of gold and oil have led to a sharp slowdown in growth in a country that until 2014 had been one of Africa's leading economies.

"It's personal," Issahaku told Reuters by telephone to explain his reasons for leaving. Issahaku announced on Monday a 200-basis-point cut in the benchmark interest rate to 23.5 percent, the biggest reduction in a decade.

The decision reflects a fall in inflation to 13.2 percent in February and signs that the government can meet its medium-term inflation target, Issahaku said following a meeting of the Monetary Policy Committee.

The bank has also been under pressure over a contract signed under the previous government to sell a stake in the Ghana Interbank Payment and Settlement Systems, government sources said.

Source: Reuters 

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