The Institute of Economic Affairs (IEA) is urging substantial revisions to the Bank of Ghana Act 2016, with a particular focus on extending the tenure of the Central Bank Governor.
This move is aimed at ensuring continuity and shielding the position from the influence of presidential terms.
During a Stakeholders’ Forum titled “Reviewing the Bank of Ghana’s Act to Promote Transparency, Accountability, and Effectiveness,” Senior Scholar Prof. Alexander Bilson Darku presented the IEA’s viewpoint.
He stressed the necessity of protecting the Central Bank from excessive governmental interference, particularly concerning the Governor’s tenure and conditions of service.
Prof. Darku asserted that the proposed amendments would bolster Ghana’s economic stability by enhancing the independence and operational effectiveness of the Bank of Ghana.
“Maintaining the autonomy of the Governor is paramount for ensuring the transparency, accountability, and overall effectiveness of the Central Bank,” he noted.
The forum delved into several critical aspects, including the composition of the Bank of Ghana’s board, the Governor’s appointment process, and the regulatory framework governing lending limits to the government.
A consensus emerged on the importance of aligning the Governor’s term with that of the President to promote continuity and effective governance.
“There was a consensus on the necessity for Ghana to carefully consider aligning the term of the Bank of Ghana Governor to overlap with that of the President to ensure continuity and effectiveness in governance,” Prof. Darku explained.
The IEA’s call for amendments highlights the need for a more insulated and stable leadership at the Bank of Ghana, aiming to foster a regulatory environment that can withstand political pressures and maintain its focus on economic stability and growth.