Togbe Afede XIV, the Agbogbomefia of the Asogli State, has called for a significant overhaul of the Bank of Ghana (BoG) to enhance its efficiency.
In a recent article dated April 11, 2024, Togbe Afede XIV underscored the need for BoG’s operations to undergo substantial restructuring to better align its objectives with the state’s and ensure a genuine pursuit of stability.
He criticised the central bank’s practice of maintaining high interest rates, which he argued negatively impacts the real sectors.
Togbe Afede XIV highlighted, “BoG requires drastic restructuring to make its operations more efficient and to align its objectives to those of the state and ensure a sincere pursuit of stability.
“Maintaining a high-interest rate environment that ensures that our banks, including BOG, make abnormal profits at the expense of the real sectors is not good central banking practice.”
He further criticised BoG for issues such as corruption, poor fiscal policy, and macroeconomic mismanagement, stressing that restructuring is essential for its survival in a standard interest rate environment.
“A central bank’s raison d’etre is not profits, but stability, where BOG has failed woefully, even though corruption and poor fiscal policy and general macroeconomic mismanagement are contributory factors. Restructuring is necessary at BoG if it should be capable of surviving in a normal interest rate environment,” he stated.
Togbe Afede XIV also highlighted the importance of scrutinizing BoG’s staff numbers, associated costs, and procurement practices.
“Attention should be paid to its governance system, staff numbers and costs, procurement practices, growing obligations to former staff, and mandate.