Togbe Afede XIV calls for overhaul of Bank of Ghana operations
The Agbogbomefia of the Asogli State, Togbe Afede XIV, has made a call for a significant restructuring of the Bank of Ghana (BoG), aimed at realigning its operations with the overarching objectives of the state and fostering a genuine pursuit of monetary stability.
In a recent article, Togbe Afede XIV minced no words as he underscored the imperative need for BoG to undergo a profound transformation, arguing that its current practices, characterized by high interest rates, have adverse repercussions on vital sectors of the economy.
Highlighting the adverse effects of maintaining an environment of elevated interest rates, Togbe Afede XIV emphasized the detrimental impact on the real sectors, decrying a system that prioritizes abnormal profits for banks, including BoG, at the expense of broader economic stability.
“BoG requires drastic restructuring to make its operations more efficient and to align its objectives to those of the state and ensure a sincere pursuit of stability.
“Maintaining a high-interest rate environment that ensures that our banks, including BOG, make abnormal profits at the expense of the real sectors is not good central banking practice,” he quipped.
Furthermore, the Agbogbomefia of the Asogli State criticized the BoG for issues such as corruption, poor fiscal policy, and macroeconomic mismanagement, stressing that restructuring is essential for its survival in a standard interest rate environment.
“A central bank’s raison d’etre is not profits, but stability, where BOG has failed woefully, even though corruption and poor fiscal policy and general macroeconomic mismanagement are contributory factors. Restructuring is necessary at BoG if it should be capable of surviving in a normal interest rate environment,” he argued.
Central to Togbe Afede XIV’s proposals is a meticulous examination of BoG’s governance structure, expenditure patterns, and procurement practices. His call for heightened scrutiny of the BoG’s operations reflects a commitment to transparency and accountability which are vital elements in restoring public trust in the central bank.
Moreover, Togbe Afede XIV advocates for a reconsideration of BoG’s mandate, suggesting a potential divestment of its government treasury management function to mitigate conflicts of interest and enable a sharper focus on regulatory duties.
In essence, Togbe Afede XIV’s impassioned plea for reform encapsulates a broader call for a recalibration of BoG’s role, emphasizing stability over profit motives and underscoring the pivotal role of the central bank in safeguarding the nation’s economic well-being.
