Ghana’s Parliament has enacted major amendments to the Bank of Ghana Act (Amendment) Bill, 2025, tightening the central bank’s ability to finance the government directly. On 18 December 2025, legislators approved provisions that bar the Bank of Ghana from purchasing government securities on the primary market and sharply restrict emergency lending outside clearly defined scenarios such as natural disasters or public health crises.
The reforms were introduced amid criticism of prior extensive financing by the Bank during and after the COVID-19 pandemic, which contributed to inflationary pressures and negative equity on the central bank’s balance sheet. Under the new framework, direct or indirect loans to the government require parliamentary approval, must operate within capped limits, and include repayment terms.
In addition, the amended law strengthens governance standards by imposing stricter qualifications for board members and enhanced audit oversight. A central focus of the bill is aligning Ghana’s central banking operations with broader macroeconomic stabilization efforts, including medium-term inflation targeting and measures to restore investor confidence through financial independence of the Bank of Ghana.
Finance Minister Cassiel Ato Forson emphasized that the changes bolster institutional autonomy while preserving government access to strategic financing tools during exceptional circumstances. The legislation now awaits presidential assent.
