In a keynote address at the ACI FMA World Congress 2026, Bank of Ghana First Deputy Governor Dr Zakari Mumuni said emerging and frontier economies need stronger policy and institutional buffers to cope with a global environment in which liquidity remains abundant but more volatile. He framed capital flows as both a source of growth and a potential trigger for instability, arguing that the key challenge is no longer just securing external financing but ensuring economies can absorb tightening in global financial conditions and sudden reversals in investor sentiment. He identified five priorities for policymakers: maintaining fiscal credibility, treating reserve adequacy as self-insurance, updating financial regulation to reflect changing capital-flow dynamics, deepening institutions and market credibility, and distinguishing productive long-term capital from volatile short-term flows. The speech highlighted advanced-economy monetary policy, the growing role of non-bank financial institutions, and geopolitical fragmentation as major drivers of liquidity conditions, while presenting exchange-rate flexibility as an important shock absorber. Mumuni also cited Bank for International Settlements data showing global cross-border bank credit at about USD 38 trillion at the end of 2025.
Bank of Ghana2026-05-21
Bank of Ghana outlines five resilience priorities for emerging markets amid volatile global liquidity
The Bank of Ghana First Deputy Governor warned that emerging and frontier economies need stronger policy and institutional buffers to manage volatile global liquidity and capital flow reversals. He set out priorities including fiscal credibility, reserve adequacy as self-insurance, updated financial regulation, deeper institutions and market credibility, and a clearer distinction between long-term and short-term capital, while highlighting exchange-rate flexibility as a key shock absorber.