The Governor of the Bank of Ghana (BoG), Dr. Johnson Asiama, has assured that the central bank remains fully functional and independent, despite acknowledging that its balance sheet has been severely weakened by the 2022 domestic debt exchange.
Speaking at the Governor Talks Series during the ongoing World Bank/IMF Annual Meetings in the United States, Dr. Asiama admitted that the restructuring had left the Bank “technically insolvent,” but stressed that its policy effectiveness and operational capacity remain intact.
“The domestic debt issue has impacted, to a large extent, on our balance sheet. The central bank itself is policy solvent, but then, technically, you can say we are almost insolvent. The challenge is to be able to correct and to repair our balance sheet within a short time, but we are looking at it as a medium-term problem. And that said, operationally, we are able to function,” he explained.
The Bank recorded an operational loss of GH¢13.23 billion in 2023, which narrowed to GH¢9.49 billion in 2024. Despite these losses, Dr. Asiama emphasised that the institution remains “policy solvent” and continues to deliver on its mandate of safeguarding monetary and financial stability.
He dismissed suggestions that the Bank’s weakened financial position had compromised its independence or subjected it to government control.
“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,” he insisted.
Looking ahead, Dr. Asiama revealed that the BoG is pursuing legislative reforms to strengthen its autonomy and guard against fiscal dominance.
“A number of reforms that we are making to the Central Bank Act should permit us to be able 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.” he added.
The Governor’s remarks come at a time when public debate continues over the central bank’s role in stabilising the economy amid Ghana’s ongoing fiscal challenges.
Leave a Reply