The Governor of the Bank of Ghana (BoG), Dr Ernest Addison, says the Bank of Ghana Act will be reviewed due to the International Monetary Fund (IMF) programme secured by the government.
The Dr Addision is optimistic that the move will strengthen the central bank’s independence and mitigate its fiscal dominance.
Additionally, the amendments to the Bank of Ghana Act will feature a stricter limit for monetary financing, mechanisms to monitor and enforce compliance, and a clear definition of emergency situations under which the limit can be temporarily lifted.
Dr Addison outlined these measures at a joint press conference between Ghana and the IMF Executive Board, which was represented by the IMF’s Mission Chief for Ghana, Stephane Roudet, in Washington, D.C.
Speaking on the effective measures which can aid the smooth operation of the amendment of the Act, Dr Addison said the Bank of Ghana would review the gold barter trade, which is becoming a threat to Ghana’s central bank.
The BoG’s balance sheet is also expected to be affected by the debt restructuring.
A report on the country’s programme issued by the IMF said the government and the BoG would assess the impact and develop plans for its recapitalization with technical assistance from the IMF.
The International Monetary Fund (IMF) approved Ghana’s request for a $3 billion bailout over three years to support the debt-ridden nation’s recovery on Wednesday, May 17, 2023.