Governor of the Bank of Ghana (BoG), Dr Ernest Yedu Addison, has firmly dismissed claims that the central bank lacks independence from the government.

Speaking on Joy News’ PM Express Business Edition on January 2, he highlighted the bank’s track record over the last eight years, stressing that the institution has consistently operated independently despite external perceptions.

Responding to questions about the BoG’s autonomy, Dr Addison was unequivocal saying “I think the Bank of Ghana has operated very independently. The record speaks for itself.”

He pointed to several years of zero financing of government deficits as evidence of this independence.

“People do not believe that there was zero financing in 2017, zero financing in 2018, zero financing in 2019,” he emphasized.

“Now in 2020, you had COVID. The government went to Parliament and got approval to get GH¢10 billion from the central bank. In 2021, we were back to zero financing with a lot of effort from the central bank.”

Dr Addison explained that the pandemic-induced crisis in 2022 necessitated some intervention but stressed that such exceptions were not indicative of routine practices.

“Those who don’t believe that the bank is independent do not understand the issues,” he said.

On whether the BoG requires additional reforms to enhance its independence, Dr Addison was clear, “I don’t buy into that argument that the Bank of Ghana needs to be made more independent. I think the Bank of Ghana can operate effectively as is.”

Instead, he advocated for legislative reforms that would ensure government accountability when borrowing from the central bank.

“What I do buy is to put into place reforms in the Act which would ensure that when governments borrow, they pay,” he explained.

Dr Addison also addressed misconceptions about the BoG’s financial losses, particularly a reported GH¢60 billion loss.

He clarified that these losses were not accumulated in a single year but spanned decades of unpaid government debt.

“The GH¢60 billion was not borrowed in one year,” he said.

“These are borrowings that have come since PNDC days. You just have to break down that GH¢60 billion—how much of it was from 1970 to 1980? How much was it from 1980 to 1990? How much was from 1990 to 2000?”

To prevent such long-term accumulations, Dr. Addison suggested reforms to ensure that government borrowings are repaid within the same fiscal year.

“Once we are able to put into place reforms which force governments to pay back in the same year, then you will not accumulate debt over the number of years that it has been done over the last 20 or 25 years,” he said.

Dr Addison’s remarks underscore the BoG’s commitment to maintaining its independence while highlighting the need for systemic reforms to address legacy issues.

“The Bank of Ghana’s autonomy is not just a principle; it’s a record,” he said.