IEA pushes for extended term for BoG Governor to promote independence, continuity

The Institute of Economic Affairs (IEA) has advocated for proposed amendments to the Bank of Ghana Act that includes an extension of the Central Bank Governor's term.

According to Professor Alexander Bilson Darku, a Senior Scholar at the Institute, this extension is necessary to ensure continuity and promote independence from presidential terms.

“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.”

“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. Alexander Darku made this known when addressing participants at a Stakeholders’ Forum on the theme; “Reviewing the Bank of Ghana’s Act to Promote Transparency, Accountability, and Effectiveness.”

He emphasized that Central Bank autonomy remains critical for every emerging economy, adding that this autonomy is essential for upholding the effectiveness and independence of the regulatory institution.

“Substantial discussion also 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,” Prof. Darku concluded.

Meanwhile, the Finance Minister, Dr. Mohammed Amin, stated on July 1, 2024, that the Cabinet has approved the proposed amendments to the Bank of Ghana Act.

He stressed that this approval will ensure Central Bank autonomy while safeguarding the institution from governmental influence.



MA/NOQ