IEA proposes amendments to BoG Act; calls for extended tenure for Governor
The Institute of Economic Affairs (IEA) is strongly advocating for critical amendments to be made to the Bank of Ghana Act of 2016.
A key element of their proposal is the extension of the Governor’s tenure to ensure continuity and independence from presidential terms.
Addressing a Stakeholders’ Forum themed “Reviewing the Bank of Ghana’s Act to Promote Transparency, Accountability, and Effectiveness,” Senior Scholar Prof. Alexander Bilson Darku from the IEA underscored the necessity of protecting the Central Bank from governmental influence concerning the Governor’s terms and conditions.
Prof. Darku emphasized the importance of maintaining the Central Bank’s autonomy to uphold its effectiveness and independence as a regulatory institution.
“We began by examining the composition of the Bank of Ghana’s board, the Governor’s appointment process, and the regulatory framework governing government lending limits.
“And there was a consensus on the necessity for Ghana to carefully consider aligning the term of the Bank of Ghana Governor to overlap that of the President to ensure continuity and effectiveness in governance,” he quipped.
“Substantial discussion focused on enhancing the independence of the Bank of Ghana and its ability to effectively promote price stability, exchange rate stability, and economic development through sound policy measures,” he added.
The IEA’s proposed amendments aim to bolster the Bank of Ghana’s capability to implement robust monetary policies and regulatory practices independent of the control of the Executive.
