21 August 2017

Ghana: Dev'p Consistent Monetary Policy to Complement Government's Fiscal Policy--President Urges Bog

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press release

The 60th anniversary of the Bank of Ghana (BoG) was, on Friday, climaxed with a Symposium and Exhibition.

The theme for the 60th anniversary of service provision as the central bank of Ghana was "Celebrating 60 Years of Central Banking in Ghana: Achievements, Challenges and Prospects."

Delivering the key note address at the opening of the event, President Addo-Dankwa Akuffo-Addo urged the bank to regard its 60th birthday as the beginning of decisive policy-making to confront the challenges of the economy and the time to resolve to make BoG better than it was now.

President Akufo-Addo mentioned increased investment, weeding out unlicensed non-bank financial institutions, ensuring the integrity of the payments system as well as the bank's external reputation and credibility as significant challenges that BoG should overcome.

He said notwithstanding the fact that BoG was an autonomous institution, monetary policy should not be at variance with government economic policy.

This, he said, called for partnership and co-operation between the BoG requiring policy co-ordination between the BoG and the Ministry of Finance.

BoG, president Akufo-Addo said, should, therefore, develop consistent monetary policy to complement government's fiscal policy for rapid economic stability and development.

President Akufo-Addo reiterated the commitment of government to the path of fiscal consolidation.

Government, he said, would, therefore, ensure, by statute, that the overall government fiscal deficit remained within a reasonable band of between three and five per cent, beginning from 2018.

He also announced a number of measures government would take as part of its transformational agenda.

These, he said, included bringing down the cost of borrowing, improving the supply of electricity, rolling out a digital addressing system and the introduction of a National Identification System to support the country's Payments and Settlements System.

President Akufo-Addo said Government was also working assiduously to offset the huge energy sector-related debt that threatened the stability of the country's banking system.

In a statement, Mr Henry Godfrey Rupiny Kerali, World Bank Country Director in Ghana, described BoG as a dependable partner in poverty reduction and in the promotion of shared prosperity.

Mr Kareli also commended BoG for the introduction of Mobile Money and other digital financial services.

A solidarity message from Godwin Emefiele, Governor of the Central Bank of Nigeria, said the Central Bank of Nigeria was proud to have excellent working relations with BoG on a number of sub-regional policy issues.

Welcoming the audience, Dr Ernest Addison, Governor, BoG, pledged BoG's determination continue to strengthen the licensing requirements, regulatory and supervisory frameworks of banks and non-bank financial institutions, in its quest to maintain sanity in the financial industry.

Dr Addison said together with other relevant stakeholders, BoG would work to build a stronger industry in a business-friendly environment by ensuring that banks had adequate capital to match their risk appetite.

He said, the Bank was fully aware of its overall institutional responsibility of developing an integrated financial system that could provide diversified range of products and services to support a dynamic growing economy.

"As we mark this 60th anniversary, therefore, the Bank commits to pursue this objective with professionalism and integrity, as we lay another foundation for the next phase of central banking in Ghana."

Present at the event were Governors from BCEAO, Kenya, Lesotho, Mauritius, Guinea, Mozambique, and Deputy Governors from South Africa, Botswana, Nigeria, Sierra Leone, and Zambia.

Source: ISD (G.D. Zaney)

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