IEA advocates for extended term for BoG Governor to ensure continuity

In a bold move aimed at bolstering Ghana’s economic stability, the Institute of Economic Affairs (IEA) is making a strong case for crucial amendments to the Bank of Ghana Act 2016.

Central to their proposal is the extension of the Governor’s tenure, ensuring continuity and independence from presidential terms.

Speaking at a Stakeholders’ Forum themed “Reviewing the Bank of Ghana’s Act to Promote Transparency, Accountability, and Effectiveness,” Senior Scholar Prof. Alexander Bilson Darku from the IEA emphasised the critical importance of safeguarding the Central Bank from governmental influence over the Governor’s terms and conditions.

He asserted that maintaining this autonomy is essential for upholding the effectiveness and independence of the regulatory institution.

“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,” he said.

“There was a consensus on the necessity for Ghana to carefully consider aligning the term of the Bank of Ghana Governor to overlap that the of President to ensure continuity and effectiveness in governance,” he added

Prof. Alexander Bilson Darku further explained that: “substantial discussion 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”.