{"id":6917,"date":"2024-07-10T09:37:17","date_gmt":"2024-07-10T09:37:17","guid":{"rendered":"https:\/\/www.fishfmonline.com\/?p=6917"},"modified":"2024-07-10T09:37:20","modified_gmt":"2024-07-10T09:37:20","slug":"independent-bank-of-ghana-is-an-absolute-necessity-kwakye-on-review-of-bog-act","status":"publish","type":"post","link":"https:\/\/www.fishfmonline.com\/?p=6917","title":{"rendered":"Independent Bank of Ghana is an absolute necessity \u2013 Kwakye on review of BoG Act."},"content":{"rendered":"\n<p class=\"wp-block-paragraph\"><strong>The Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye says that calls for review of the Bank of Ghana (BoG) Act are meant to safeguard the central bank\u2019s independence while ensuring its accountability.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To him, an independent, transparent and accountable Bank of Ghana is an absolute necessity.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cIEA\u2019s recent call for review of the BoG Act is meant to safeguard the Bank\u2019s independence while ensuring its accountability.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThat is fair game. The review proposed longer terms for the Governors, approval of their remuneration by Parliament and their accountability to same body,\u201d he wrote on his X platform.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Earlier, the Minister of Finance Dr Mohammed Amin Adam announced that the cabinet had approved the proposed amendment of the BoG Act as part of efforts to boost the independence of the central bank.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The amendment is also aimed at addressing the recommendations by the International Monetary Fund (IMF) safeguard assessment to strengthen BoG\u2019s autonomy.<\/p>\n\n\n\n<figure class=\"wp-block-embed is-type-video is-provider-youtube wp-block-embed-youtube wp-embed-aspect-16-9 wp-has-aspect-ratio\"><div class=\"wp-block-embed__wrapper\">\n<div class=\"ose-youtube ose-uid-0d1143fc6fde81ddfc0e909fffbe12e9 ose-embedpress-responsive\" style=\"width:400px; height:400px; max-height:400px; max-width:100%; display:inline-block;\" data-embed-type=\"Youtube\"><iframe loading=\"lazy\" allowFullScreen=\"true\" width=\"400\" height=\"400\" src=\"https:\/\/www.youtube.com\/embed\/t5NkvFTrRAk?feature=oembed&color=red&rel=0&controls=1&start=&end=&fs=0&iv_load_policy=0&autoplay=0&mute=0&modestbranding=0&cc_load_policy=1&playsinline=1\" frameborder=\"0\" allow=\"accelerometer; encrypted-media;accelerometer;autoplay;clipboard-write;gyroscope;picture-in-picture clipboard-write; encrypted-media; gyroscope; picture-in-picture\" allowfullscreen referrerpolicy=\"origin\"><\/iframe><\/div>\n<\/div><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\">The Karaga lawmaker said this during a joint press conference by the Ministry of Finance, Bank of Ghana, and the IMF on Monday, July 1.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">He said \u201cThe IMF has acknowledged Ghana\u2019s strong performance, as attested to by Stephane Roudette, the IMF Mission Chief for Ghana. Ghana\u2019s performance under the programme has been generally strong with all the quantitative performance criteria for the second review and all indicative targets met, except one and good progress is being made on key structural reforms.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">\u201cThe structural reforms executed under the second review include the following:<br>i. We expanded GIFMIS infrastructure to cover 280 IGF-reliant institutions with all the available functionalities in December 2023; ii. We published on PURC\u2019s website, the final report of the first quarterly audit of ECG\u2019s single account in Feb 2024;&nbsp; iii. The BoG in March 2024, took the requisite action against banks that did not comply with the one-third recapitalization and the non-negative CAR requirements in 2023; iv. The BoG and MoF designed and began the implementation of a credible, comprehensive, and costeffective plan that seeks to address NIB\u2019s insolvency challenges by end-2024, with approval from Cabinet; v. We also developed and Cabinet approved a centralized inventory of all ongoing and planned public investment projects in March 2024; and vi. Cabinet has approved proposed amendments to the BoG Act aimed at addressing the recommendations by the IMF\u2019s safeguard assessment to strengthen BoG\u2019s autonomy.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The proposed amendment of the Act was made following the approval of the economic support programme for Ghana by the Fund last year. This was contained in a country report issued by the Fund on May 17, 2023.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The amendments to the Bank of Ghana Act would feature a stricter limit for monetary financing, mechanisms to monitor and enforce compliance, and offer clear definition of emergency situations under which the limit can be temporarily lifted.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Prior to Ghana securing the IMF Executive Board for a $3 billion bailout, the Bank of Ghana and the Ministry of Finance signed a memorandum of understanding (MoU) to end monetary financing during the programme.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>The Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye says that calls for review of the Bank of Ghana (BoG) Act are meant to safeguard the central bank\u2019s independence while ensuring its accountability. To him, an independent, transparent and accountable Bank of Ghana is an absolute necessity. \u201cIEA\u2019s recent call [&hellip;]<\/p>\n","protected":false},"author":2,"featured_media":6918,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"footnotes":""},"categories":[9,41],"tags":[1615],"class_list":["post-6917","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","category-general-news","tag-bank-of-ghana"],"_links":{"self":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6917","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcomments&post=6917"}],"version-history":[{"count":1,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6917\/revisions"}],"predecessor-version":[{"id":6919,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/posts\/6917\/revisions\/6919"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=\/wp\/v2\/media\/6918"}],"wp:attachment":[{"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fmedia&parent=6917"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Fcategories&post=6917"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.fishfmonline.com\/index.php?rest_route=%2Fwp%2Fv2%2Ftags&post=6917"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}