IEA proposes Amendments to strengthen independence of BoG
This recommendation was made during the first stakeholders' forum
Dr. John Kwakye, the Director of Research at the Institute of Economic Affairs (IEA), has suggested amending the service terms for the Board of Directors of the Bank of Ghana.
Read full articleHe proposed that Parliament should determine the allowances of these officials to shield the bank from Executive influence.
This recommendation, according to Graphic Online reports, was made during the first stakeholders' forum aimed at reviewing the Bank of Ghana’s (BoG) operations to ensure greater transparency and accountability.
During the forum held in Accra, Dr. Kwakye emphasized that the central bank's independence is compromised when the government sets the terms for key officials like the Governor.
He argued that Parliament should oversee these appointments to avoid undue executive control. He also recommended that the Bank of Ghana Act specify qualifications for board members, ensuring they possess the necessary expertise for central banking.
Dr. Kwakye further highlighted the need for an oversight body similar to the Bank of England’s Oversight Committee.
The forum, organized by the IEA, reviewed existing Bank of Ghana legislation and suggested amendments to enhance the bank’s transparency and accountability.
Attendees included representatives from various sectors, including the Bank of Ghana, the Ministry of Finance, Parliament, and civil society organizations.
In discussing the mandate of the central bank, Dr. Kwakye pointed out that the appointment of the Governor and Deputy Governors should not be tied to presidential terms, as this allows incoming presidents to replace them at will.
He stressed that the central bank's role extends beyond price stability to include a developmental mandate.
Additionally, he recommended that Parliament, rather than the Executive, should approve appointments to ensure a balanced governance structure and that professional qualifications relevant to central banking should be considered for board members.
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