Ofori-Atta calls for national discourse on the operational independence of Central Banks

Finance Minister, Ken Ofori-Atta, is advocating for a national discourse for policy clarity on what the operational independence of the central bank implies in low-middle income countries like Ghana.

In an opinion article he authored, Ken Ofori-Atta shared his personal belief that central banks must have independence in executing their monetary policy mandate.

He explained that, “especially if it is based on a price target, where the Government sets the price targets, and Central Banks, in our case, BoG, independently uses its operational tools to achieve it.”

“Current BoG Governor Addison, just like me, has faced major economic hurdles since 2017, inheriting a derailed IMF programme and a highly impaired and ethically strained financial industry from our predecessors, having to navigate the serious revenue shocks on the back of COVID-19 and distortions to our supply chain induced by both COVID-19 and international geopolitics. In resolving these, we have all had to make sacrifices, and the BoG balance sheet was significantly affected,” the Finance Minister wrote.

In recent times, there has been the much-debated concept of the institutional operational independence and accountability of central banks.

Some finance experts have argued that Central Bank independence in Ghana or most African countries was further complicated by interference from the International Monetary Fund and other global lenders.

MA/NOQ

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