A new policy analysis by the Centre for Economic Research and Policy Analysis (CERPA) has warned that the growing overlap between government spending policies and monetary policy could weaken the independence and credibility of the Bank of Ghana (BoG).
The think tank said the central bank’s increasing losses largely linked to its policy interventions and exposure to government debt are raising concerns about its long-term financial stability and ability to operate independently.
In its review of the Bank of Ghana’s financial performance between 2018 and 2025, CERPA argued that the central bank has moved beyond its traditional role by becoming heavily involved in government financing and quasi-fiscal programmes.
“The heavy exposure to government debt and involvement in quasi-fiscal operations indicates a shift beyond traditional central banking roles,” CERPA stated in the report.
The analysis comes at a time of growing public debate over the Bank of Ghana’s financial health, following years of inflation-control measures, high interest rates, and exchange rate pressures.
According to CERPA, the issue goes beyond financial losses alone.
The think tank warned that continued losses could weaken the central bank’s balance sheet and eventually require financial support from the government.
“Persistent losses weaken the equity position of the central bank, potentially requiring recapitalisation by the government. This creates a fiscal-monetary interdependence that may compromise operational independence,” the report cautioned.
CERPA explained that such a situation could blur the distinction between fiscal policy, which is managed by the Ministry of Finance, and monetary policy, which falls under the central bank’s responsibility.
The think tank warned that if this growing dependence is not addressed, it could reduce confidence in Ghana’s economic management.
To address the risks, CERPA is proposing a structured recapitalisation plan for the Bank of Ghana, potentially through long-term government bonds or direct budget support.
It also called for a clearer separation between the roles of the government and the central bank.
In addition, CERPA recommended that quasi-fiscal programmes supported by the Bank of Ghana should either be phased out or transferred fully to the Ministry of Finance, allowing the central bank to focus on its core responsibility of maintaining price stability.
The think tank described the reforms as urgent, warning that without decisive action, the Bank of Ghana’s financial position could remain a major source of economic vulnerability.
The report adds to increasing scrutiny of Ghana’s economic management as policymakers continue to balance inflation control, exchange rate stability, and rising public debt pressures.
