BoG Governor Refutes Claims of Compromised Independence Amid Debt Exchange Programme
The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison, has dismissed allegations suggesting that the central bank’s independence was undermined by the government’s debt exchange programme.
Speaking on Joy News’ PM Express Business Edition monitored by norvanreports on January 2, 2025, Dr. Addison clarified that the programme was a necessary response to a national crisis, independent of the BoG’s autonomy.
“The debt exchange programme has nothing to do with the independence of the central bank,” he stated emphatically, describing it as a “pure crisis issue” essential to averting economic collapse.
Avoiding Economic Collapse
Dr. Addison detailed the precarious situation that necessitated the debt exchange programme, citing the risk of unpaid salaries, halted investments, and potential national chaos.
Comparing Ghana’s circumstances to Sri Lanka’s economic collapse, he highlighted the BoG’s pivotal role in maintaining stability.
“In Sri Lanka, the central bank could not step in because they had run out of foreign exchange reserves. In the case of Ghana, we were lucky that we still had reserves,” he remarked.
IMF’s Crisis Strategy
Addressing the timeline of events, Dr. Addison explained that the International Monetary Fund (IMF) prescribed a structured approach to Ghana’s economic challenges, which involved continued financing of the government by the BoG during the crisis.
“The IMF’s approach to the crisis was clear, the Bank of Ghana had to continue financing the government to maintain stability while we worked on the program,” he said, noting that the debt exchange programme followed a debt standstill to ensure an orderly transition.
Dr. Addison also dismissed suggestions that the BoG could have implemented measures earlier to minimise economic shocks, asserting that the decisions made were necessary given the severity of the crisis.
Independence and Recovery
Dr. Addison reiterated that the BoG’s actions during the debt exchange programme were aligned with the IMF’s framework to restore stability, rejecting claims of compromised independence.
“The recent economic challenges were about survival. Let’s not oversimplify the situation,” he emphasised, urging the public to focus on the broader context of Ghana’s economic recovery.
Dr. Addison’s remarks underscore the central bank’s commitment to its mandate and its critical role in steering Ghana through unprecedented economic challenges.
