Reports indicate that as part of Ghana's International Monetary Fund (IMF) programme, revisions will be made to the Bank of Ghana (BoG) Act to enhance the independence of the central bank and address fiscal dominance.

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The amendments to the Act will introduce a stricter limit for monetary financing, establish mechanisms for monitoring and enforcing compliance, and provide a clear definition of emergency situations in which the limit can be temporarily lifted.

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To meet the requirements set by the IMF, the Bank of Ghana and the Ministry of Finance have already signed a memorandum of understanding (MoU) aimed at eliminating monetary financing during the programme, pending legislative changes.

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Additionally, an updated Safeguards Assessment is underway to support the development of further changes to the Bank of Ghana Act. This assessment will review the risks associated with the government's gold purchase and gold-for-oil programmes.

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The debt restructuring process is expected to impact the balance sheet of the Bank of Ghana.

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A report from the IMF states that the government and the central bank will assess the effects of the restructuring and work on plans for the recapitalization of the bank with technical assistance support from the Fund.

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