Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has announced that major legislative reforms are underway to reinforce the central bank’s independence and strengthen its financial resilience following the heavy toll of the domestic debt exchange.
Speaking during the Governor Talks Series at the ongoing World Bank/IMF Annual Meetings in the United States, Dr. Asiama said amendments to the Central Bank Act would provide a stronger legal foundation to protect the institution from fiscal pressures and ensure that its operations remain insulated from political interference.
“A number of reforms that we are making to the Central Bank Act should permit us to hold that anchor going forward,” he explained. “We need to define, for example, what constitutes an emergency… So yes, the legislation will help to strengthen our independence going forward.”
Dr. Asiama admitted that the 2022 domestic debt restructuring had significantly eroded the BoG’s balance sheet, leaving it technically insolvent, but he emphasised that the Bank remains “policy solvent” — meaning fully capable of executing its monetary and financial stability mandate.
“The domestic debt issue has impacted, to a large extent, our balance sheet. Technically, you can say we are almost insolvent. The challenge now is to correct and repair our balance sheet within the medium term. That said, operationally, we are fully functional,” he clarified.
Despite reporting an operational loss of GH¢13.23 billion in 2023, which improved to GH¢9.49 billion in 2024, the Governor said the central bank continues to perform its core functions effectively, including maintaining price stability, regulating financial institutions, and managing inflation.
He dismissed suggestions that the BoG’s weakened financial position had compromised its autonomy, stressing that the institution remains independent in all its policy decisions.
“I must say that even at current levels, we have our independence. In no way are we controlled by the government. We are not constrained in any way at all,” Dr. Asiama asserted.
The proposed amendments to the Central Bank Act, he noted, would also establish clearer fiscal boundaries between the government and the BoG, preventing a repeat of situations where the central bank’s balance sheet absorbs excessive public debt.
By pursuing these reforms, the BoG hopes to rebuild public confidence, restore its financial strength, and fortify its role as a credible and independent institution anchoring Ghana’s economic stability.
