Togbe Afede XIV, the Agbogbomefia of the Asogli State, has called for a drastic restructuring of the Bank of Ghana (BoG) to enhance its efficiency and alignment with national objectives.
In an article dated April 11, 2024, Togbe Afede XIV underscored the need for BoG's policies to prioritize the real sectors rather than maintaining high interest rates, which he criticized as detrimental.
"BOG requires drastic restructuring to make its operations more efficient, and to align its objectives to those of the state and ensure a sincere pursuit of stability. Maintaining a high interest rate environment that ensures that our banks, including BOG, make abnormal profits at the expense of the real sectors is not good central banking practice," he stated.
Highlighting issues of corruption, fiscal policy inadequacies, and macroeconomic mismanagement within BoG, Togbe Afede XIV stressed the necessity for restructuring to enable its adaptation to a normal interest rate environment.
"A central bank’s raison d’etre is not profits, but stability, where BOG has failed woefully, even though corruption and poor fiscal policy and general macroeconomic mismanagement are contributory factors. Restructuring is necessary at BOG, if it should be capable of surviving in a normal interest rate environmen," he emphasized.
Togbe Afede also urged scrutiny of BoG's staffing, associated expenditures, and procurement practices, advocating for governance reforms and a reassessment of its mandate.
"Attention should be paid to its governance system, staff numbers and costs, procurement practices, growing obligations to former staff, and mandate. Regarding its mandate, there is a strong case for BOG relinquishing its government treasury management function (to focus on regulation) because of conflict with its profit motivation," he noted.
Togbe Afede XIV