The government has laid before Parliament a bill seeking to amend the Bank of Ghana Act, with proposals to extend the tenure of the Bank’s Board and introduce new measures to regulate central bank financing of government expenditure.

Under the proposed amendment, the term of the Bank of Ghana Board would be increased from four to five years. The bill also provides for the outgoing Minister of Finance to remain on the Board until a new government constitutes a fresh board.

In addition, the legislation seeks to place tighter controls on the Bank of Ghana’s financing of government spending. If approved, any central bank support exceeding 5 per cent of total government expenditure would require prior parliamentary approval.

The bill, however, has drawn criticism from the Minority in Parliament, which argues that the proposed changes could undermine the independence of the Bank of Ghana. According to the Minority, the inclusion of the outgoing Finance Minister and the extension of the Board’s mandate appear designed to give the government undue influence over the operations of the central bank.

The Minority has cautioned against what it describes as attempts to monopolise the management and decision-making processes of the Bank of Ghana, warning that such moves could weaken institutional checks and balances and erode public confidence in the central bank.