Parliament passes new bill to make BoG completely independent
Parliament has passed a new Bank of Ghana Bill that will make the financial regulator completely independent of government and other institutions.
The Bill if accented to by the president will give the bank special powers, including an ability to come to the aid of troubled micro finance companies.
Joy FM's Parliamentary correspondent Elton John Brobbey reports that with the passage of the new bill into law, the Deputy Finance Minister shall lose the position on the Board of Central Bank.
The Central Bank of Ghana came into being in March 4 1957, two days before the country gained its independence.
Since then, the bank has gone through different administrative transitions.
The Bank of Ghana presently has a duty to formulate and implement monetary policy aimed at achieving the objects of the Bank; promote by monetary measures the stabilization of the value of the currency within and outside Ghana; institute measures which are likely to have a favourable effect on the balance of payments, the state of public finances and the general development of the national economy; regulate, supervise and direct the banking and credit system and ensure the smooth operation of the financial sector.
However there is a widely held perception that the Central Bank is always under the control and direction of the government in power.
Elton Brobbey said with the passage of the Bill, the Bank shall no longer be subject to the direction or control of any authority or government.