BOG urges review of banking laws

The Bank of Ghana (BOG) on Monday urged Parliament to change the banking laws to reflect the provisions establishing the West African Central Bank (WACB), which will come into being next year.

This is important to ensure that statutes of national central banks and other relevant national legislations are compatible with the West African Monetary Zone (WAMZ) agreement, Mr Van Lare Dosoo, Deputy Governor, said at the opening of a workshop in Accra on: "The role of Parliament in regional co-operation and integration: the West African currency."

He explained that under WACB statutes the BOG would become a branch of WACB and "will no longer have the autonomy of currency issue or implementation of monetary policy."

"Furthermore, under the Statues, Article 15.1 of the WAMZ the central government, local or public authority is prohibited from receiving credit from the central bank except in exceptional cases where temporary shortfalls in receipts are accommodated to a maximum of 10 per cent of the previous year's tax revenue," Mr Dosoo said.

"In addition, Article 15.5 of the WAMZ statute provides that all restriction on the movement of capital between member states and third countries are prohibited.

"Parliament in its wisdom will have to give legal backing to these statutes by changing the laws on our statute books to reflect the provisions of the West African Central Bank."

The workshop was organised by the Parliamentary Select Committee on Foreign Affairs in collaboration with the West African Monetary Institute (WAMI). It is to provide first hand information for lawmakers on the current integration programmes of ECOWAS especially the proposed common currency.

The Deputy Governor said many of the provisions are incompatible with sections of Ghana's constitution and laws governing the operation of the Bank of Ghana.

"It is, therefore, important that Parliament carefully considers the provisions of the WAMZ agreement so as to effect the appropriate changes in law to give effect to the agreement. If this is not done eventually, all our best efforts towards the realisation of the common currency will come to naught."

Mr Dosoo said managers of the economy must do more to help the country attain the requisite convergence criteria for entry into the Second Monetary Zone.

The establishment of a second monetary zone is to merge the currencies of several English-speaking countries in the sub-region.

Dr Kwesi Nduom, Minister of Economic Planning and Regional Co-operation, in a speech read for him said the workshop marks a new partnership between the Executive and Legislature in promoting regional integration.

"This partnership will ensure that the legislature is well informed about regional agreements that need to be ratified by national parliaments before they are implemented at the national level."

Dr Nduom said the non-ratification of ECOWAS protocols by some member countries was one of the major problems hindering the implementation of the numerous agreements in the sub-region.

He said his ministry supports the fast track approach of integration in sub-region.

Dr Nduom said it is in this direction that an inter-ministerial committee, known as the National Sensitisation Committee, has been set up to support the ECOWAS and WAMI in sensitising the various stakeholders on the West African Common Currency.

The Speaker of Parliament, Mr Peter Ala Adjetey commended the organisers of the workshop, saying that against the background of globalisation, it appears rapid integration is the only way small nations can survive.

He stressed the need for integration to cover agriculture and industrial production, trade, currencies and infrastructure.

Mr Adjetey said Parliament was ready to support the efforts of leaders in the sub-region towards integration.