The Governor and Responsibilities of the Bank of Ghana

Nov 07, 2025 0

The Bank of Ghana (BoG) is the central bank of Ghana, located in Accra and formed in 1957. In addition to its head office, the Bank of Ghana has seven regional offices responsible for implementing the bank's policies and directives in their respective regions.

Bank of Ghana Head Office in Accra

Establishment and Early History

The Central Bank of Ghana traces its roots to the Bank of the Gold Coast (BGC), where it was nurtured. As soon as local politicians and economists saw political independence in sight in the mid 1950's the agitation for a central bank was revived. It was argued that a central bank was one institution which would give true meaning to political independence. Proposals of the advocates for a central bank were accepted and in early 1955 another Select Committee was set up by the Government to take a new look at the Trevor Report and prepare the grounds for the establishment of a central bank in Ghana.

By the end of 1956, all was set for the establishment of the Bank of Ghana. On the 4th March 1957, just two days before the declaration of political independence, the Bank of Ghana was formally established by the Bank of Ghana Ordinance (No. 34) of 1957, passed by the British Parliament. Frantic preparations then began to put in place an organisational structure for the new central bank. The opening ceremony paved the way for the Bank to commence formal banking operations on 1st August 1957, when the Banking Department opened for business.

In his opening address at the end of July 1957, the then Leader of Government Business (Prime Minister) stated with pleasure that the occasion marked the beginning of independent monetary administration in the newly independent Ghana - a cherished dream had at long last become a reality. The Leader of Government Business had put the aspiration of the country in establishing the central bank as follows: "In the modern world a central bank plays a very important and decisive role in the life of a country.

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The Bank of Ghana has since 1957 undergone various legislative changes. The Bank of Ghana Ordinance (No.34) of 1957 was repealed by the Bank of Ghana Act (1963), Act 182.

First Governor and Early Administration

The first Governor of the Bank was Mr. Alfred Eggleston, the former Managing Director of BGC and an accomplished Scottish banker on secondment to Ghana from the Imperial Bank of India. His deputy governor was one Mr. Douglas F.

The Governor of the Bank and his Deputy were appointed by the Governor of the Gold Coast on the recommendation of the Prime Minister, in accordance with Section 10(1) of the 1957 Ordinance. The Governor and his Deputy were each appointed for a term of five years and were eligible for reappointment. Those two officials were answerable to the Board for their acts and decisions in the course of general administration of the affairs of the Bank. The Board itself was also answerable to the Ministry of Finance for efficient management of the Bank.

The Governors' Office was headed by the Secretary to the Board while the other departments were headed by Managers who reported directly to the Deputy Governor or, in special cases to the Governor.

Relations with Other Banks

Relations with the other banks in the system were set out under sections 39 - 42 of the 1957 Ordinance. Initially, the relation were not very strong. The Central Bank was to act as banker to other banks and co-operate with them to promote and maintain adequate and reasonable banking services for the public. It was also to ensure high standards of conduct and management in the banking system.

The Bank was also given powers to require the banks to maintain a proportion of their assets in specified form and to submit monthly returns on their operation to the Central Bank.

Significance of Establishment

In conclusion, it may be said that the establishment of Bank of Ghana on 4th March 1957 was indeed a significant landmark in the history of the financial system in Ghana. It boosted public morale and raised further the aspirations of many countrymen even two days before Ghana attained independence on 6th March 1957.

Governing Body

The governing body of the Bank is the Board of Directors as stipulated in the Bank of Ghana Act, 2002 (Act 612). The Board is appointed by the President of the Republic of Ghana, in consultation with the Council of State. The Governor and the two Deputy Governors are appointed for a term of four years and are eligible for re-appointment.

The Committee formulates and directs the Bank’s strategic policies in the fulfillment of its objectives. It collaborates with the Finance Department in ensuring that the Bank’s Budget is prepared and approved on schedule. The Committee is responsible for considering and making policy recommendations on economic, banking and financial issues relating to the Bank’s functions and the economy as a whole. The Committee formulates policies relating to the human resource management function of the Bank and assesses their effectiveness so as to make necessary reviews when necessary.

Central Bank Independence

The Bank of Ghana is a constitutionally created institution (Article 183 of the 1992 Constitution) with the following functions: authority to issue the currency of Ghana, promoting and maintaining the stability of the currency of Ghana, be the sole custodian of state funds and encourage and promote economic development and the efficient utilization of the resources of Ghana through effective and efficient operation of a banking and credit system in Ghana. These constitutional functions are further amplified in the Bank of Ghana Act (2002). Under the Banking Act (2004) as amended in 2007 and the Non-Bank Financial Institutions Act (2008) and the Bank of Ghana is also given responsibility for the regulation and supervision of the banking system as well as non-bank financial institutions.

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The Bank of Ghana has statutory autonomy. The autonomy provision insulates the Bank of Ghana from any authority in Ghana including the Executive and Parliament.

There are several precedents to guide Ghana in how to structure the statutory roles of the Bank of Ghana and Government in economic management. The preamble to the Act recognizes the “Crown’s [Government’s] right to determine economic policy” and the central bank to be responsible for “formulating and implementing monetary policy designed to promote stability of the general level of prices”.

The rules and practices cited above suggest that the issue of constitutional independence of the Bank of Ghana should be handled with extreme care.

At issue is the compatibility of central bank independence with Government determination of monetary policy objectives. The 2007/2008 global financial crisis has revealed the mutual dependence of the central bank and Government. requires coordinated fiscal and monetary measures.

The flip side of central bank independence is accountability. Advocates of greater central bank independence accept that such independence entails greater accountability to ensure that the independence is used in the public interest.

Under Ghana’s current statutory arrangements we have independence without accountability.

Potential Governors

In the quest to appoint a new Governor for the Bank of Ghana (BoG), the nation stands at a critical juncture. The focus has now shifted to four distinguished individuals: Dr. George Sipa-Yankey, Dr. Nashiru Issahaku, Dr. Johnson P. Asiama, and Togbe Afede XIV.

A distinguished investment lawyer, former Minister of Health, and former Chief Executive Officer of Ghana Gas, Dr. Sipa-Yankey’s career exemplifies excellence and resilience. His international experience includes roles with the ECOWAS Bank for Investment and Development in Togo, serving as a Consultant to the World Bank under the auspices of the UNDP and UNIDO, and holding academic positions as an Adjunct Professor at Georgetown University in the United States.

Dr. Johnson P. Asiama, a former Deputy Governor of the Bank of Ghana, also brings a wealth of expertise to the table. His tenure as a Director at the Agricultural Development Bank (ADB) and the Bank of Ghana reflects his deep understanding of the sector. Similarly, Togbe Afede XIV, a celebrated investment banker and Chairman of the World Trade Centre Accra, commands immense respect. His tenure as Chairman of the Council of State further solidifies his reputation for sound leadership and strategic thinking.

Dr. Nashiru Issahaku, a former Governor of the Bank of Ghana, also commands attention in this discussion. His tenure saw noteworthy contributions to Ghana’s financial landscape.

Ultimately, the responsibility of appointing the next Governor of the Bank of Ghana lies with President Mahama, a leader renowned for his dedication to national progress.

List of Governors of the Bank of Ghana

Since its establishment, the Bank of Ghana has been led by several distinguished governors. Here is a list of some of them:

Governor	Term Start	Term End
Alfred Eggleston	1957	1966
N. T. Clerk	1966	1968
J. H. Frimpong-Ansah	1968	1973
A. E. K. Ashiabor	1973	1977
Alex K. Appiah	1977	1981
J. S. Addo	1981	1987
G. K. Agama	1988	1997
K. B. Amissah-Arthur	1998	2000
Paul Acquah	2001	2009
Kwamena Duffuor	2009	2013
Henry Kofi Wampah	2013	2016
Abdul-Nashiru Issahaku	2016	2017
Ernest Addison	2017	Incumbent