It’s time for a new bold address in Bank of Ghana

The economist and professor of finance, Godfred Alufar Bokpin, has advised the Bank of Ghana to reposition to support the productive aspects of the economy, instead of simply confirming the liquidity when necessary.

He urged the Central Bank to intervene in government decisions and actions to mitigate the hard economic effects of exchange rate fluctuations.

The graphic business joins this call, since we believe that the transition of leadership in the Bank of Ghana presents a crucial opportunity to reinvent the role of the central bank in the economic development of the country.

For too long, the Bank of Ghana has focused mainly on traditional monetary policy tools, which manages inflation through interest rates and liquidity control.

While these are still important functions, they have proven insufficient to address Ghana’s complex economic challenges. The clear reality of our inflation rate from 23.8% to January 2025, despite the aggressive monetary tightening, suggests that we need a more comprehensive approach.

The decision of the Central Bank to support the government with GH ¢ 77 billion in 2022, although controversial, demonstrates its potential to intervene decisively in economic matters.

However, such interventions must be redirected to productive sectors instead of tax patches.

Professor Bokpin’s call so that the swamp actively supports the modernization and agricultural irrigation systems represents the type of strategic thinking we need as a country.

Ghana’s persistent currency challenges are mainly derived from structural supply limitations instead of excess demand. This reality requires a fundamental change in the Central Bank approach.

Instead of simply managing monetary fluctuations, the BOG must actively participate in the construction of the productive capacity of the economy. This could involve the creation of specific financial programs for export -oriented industries and support technological advance in key sectors.

However, any transformation of the Central Bank must first address internal challenges. Excessive operating costs in the BOG are unsustainable and undermine their credibility.

The new governor must demonstrate fiscal responsibility rationalizing operations and guaranteeing transparency. In addition, weaknesses identified in the banking sector require urgent attention, which requires stronger collaboration with financial intelligence units to combat corruption and fraud.

The current IMF program provides a framework and an opportunity for this transformation. While the program emphasizes macroeconomic stability, it should not prevent the BOG from adopting a more proactive development role.

Other emerging economies have successfully balanced these imperatives, and Ghana must find their way to do the same.

The challenges facing Ghana’s economy, from high inflation to monetary depreciation and limited productive capacity, require bold and innovative solutions.

The Traditional Adjusted Monetary Policy Play Book and Passive Market Supervision has demonstrated its limitations.

As we advance, Ghana’s bank must evolve towards an institution that actively supports economic transformation while maintaining its central stability mandate.

The mandate of Dr. Asama will be judged not only for inflation statistics, but for the effectiveness of the effective way that the Central Bank contributes to Ghana’s broader economic development.

This means building a more resistant financial sector, supporting productive investments and helping to create an economy that works for all Ghanaes.

The forward path requires a careful balance. The swamp must maintain its credibility while expanding its role in economic development.

You must support government initiatives without compromising your independence. The most important thing should help build an economy that can generate sustainable growth and climatic external shocks.

The bets are high. Ghana’s economic future depends significantly on obtaining this correct transition.

As Professor Bokpin suggests, the time has come for the Bank of Ghana to adopt a new structure and form, one that positions it as an active participant in Ghana’s economic transformation instead of only a passive guardian of monetary stability.