President commends BoG's contribution to national development

Accra, Aug. 18, GNA - President Nana Addo Dankwa Akufo-Addo has applauded Bank of Ghana's (BoG) pivotal role in promoting the country's socio-economic development.

He said the Bank's diligence and commitment had ensured it fulfilled its mandate to maintain price stability and to create an enabling environment for sustainable growth.

'You are a unique institution with a broad mandate. You are not just distinguished technocrats. You are the banker to the Government, and the custodian of the nation's precious asset - money.

'You are the currency manager, the source and regulator of liquidity and, above all, the lender of last resort to the banking sector. How you fulfill these multiple roles is what makes you a unique institution,' the President said when addressing the opening of the 60th Anniversary Lectures and Exhibition of the BoG in Accra on Friday.

He urged the Bank to continue to be at the forefront of developing and deepening the financial market in Ghana and to confront the challenges facing it.

'The need to entrench reputation and credibility in the financial system is crucial. A weak banking system undermines growth and, on this basis, the current weaknesses in our banking sector need to be addressed forcefully to minimize any adverse financial consequences to unsuspecting savers, and their spill-over effects on the economy,' he said.

President Akufo-Addo advocated for partnership and co-operation between the BoG and Government in order to sustain macroeconomic stability and rapid growth in the country.

'While the President appoints the Governor and his deputies as well as members of the Board of Directors, the Bank is guaranteed its operational independence in order to deliver on its multiple mandates. Full autonomy for the Bank, however, does not mean that the Bank's monetary policies should be at variance with Government's overall macroeconomic policies,' he said.

'With 60 years of experience behind us, I believe we should have learnt great lessons both from our own history and from the experiences of other countries about how this partnership should work. History has taught us well that monetary policy must complement fiscal policy to create an enabling macroeconomic environment to promote growth and development of the Ghanaian economy,' the President said.

He urged the Bank to, among other things, control the quantity of money, manage interest rates, safeguard the domestic and external value of the cedi, ensure the soundness of the financial system and focus on working to promote confidence in the economy.

President Akufo-Addo advised the Bank to collaborate effectively with the Ministry of Finance to put in place policies that were both internally and externally consistent.

'Under my leadership and watch, I insist that there must be greater fiscal and monetary policy coordination to promote and sustain macroeconomic stability.

This is the only way by which we will enable the private sector to flourish and create the needed jobs within the economy,' he added.

The lessons from the recent global financial crisis indicated that central banks could be relied upon to steer any crisis-ridden economy, when there was collaboration between the fiscal and monetary authorities, President Akufo-Addo said.

'We, the Government and the people of Ghana, have high hopes that the Bank of Ghana, given its expertise and experience, will roll out coherent monetary policies that would create the enabling environment for the rapid transformation of the Ghanaian economy. This is what we expect of the Central Bank,' the President added.

GNA