Ghana’s Parliament, on Thursday, 18 December, approved the Bank of Ghana (Amendment) Bill, 2025, introducing tighter limits on Central bank financing of Government to safeguard institutional independence.
The amendments bar the Bank of Ghana from purchasing government securities on the primary market and narrow the definition of emergencies that allow lending beyond the existing 5% cap, restricting them to force majeure events such as natural disasters, presidentially declared crises or public health emergencies.
The revised law bans all direct or indirect lending to the state except under clearly defined, exceptional circumstances, with such advances subject to capped limits, repayment terms and parliamentary approval. It also strengthens board eligibility criteria and audit oversight, aligning with the IMF programme agreed in 2023 to curb central bank financing, stabilise inflation and restore investor confidence.
The reforms follow criticism of extensive central bank support during and after the COVID-19 pandemic, a period marked by loss of access to international capital markets, rising inflation and negative equity at the Bank of Ghana. Finance Minister Cassiel Ato Forson said the changes would “strengthen the central bank” while preserving its autonomy. Pending presidential assent, the amendments also provide for joint medium-term inflation targeting with government and a framework for state recapitalisation of the central bank.