Stories and facts

The Bank of Ghana (BoG), Ghana's central bank, has played a pivotal role in the country's economic landscape since its establishment.

Located in Accra, the bank was formally created on March 4, 1957, two days before Ghana gained its political independence.

In addition to its headquarters in Accra, the Bank of Ghana operates seven regional offices in Hohoe, Kumasi, Sunyani, Tamale, Takoradi, Bolgatanga, and Wa.

These regional offices are tasked with implementing the central bank’s policies and directives, as well as offering banking services to the government, financial institutions, and the public.

The Bank of Ghana is committed to enhancing financial inclusion and is an active member of the Alliance for Financial Inclusion, reflecting its dedication to fostering a more inclusive financial ecosystem.

Establishment of the Bank of Ghana

The Bank of Ghana was officially inaugurated in 1957 under the Bank of Ghana Ordinance (No. 34), passed by the British Parliament.

This momentous event coincided with the nation’s independence, marking a significant milestone in Ghana’s post-colonial history. By mid-July of that year, the Bank’s head office on High Street in Accra was fully operational.

Over the years, the Bank of Ghana has undergone several legislative changes to refine its legal framework, with the 1992 Bank of Ghana Law, PNDCL 291, consolidating its governing structure.

The Path to Central Banking

The roots of the Bank of Ghana can be traced to the Bank of the Gold Coast (BGC), Ghana’s first commercial bank. As Ghana neared independence in the mid-1950s, the call for a central bank gained momentum.

Local politicians and economists recognized that a central bank was essential for the country to fully assert its political and economic autonomy.

The idea for a national bank with central banking functions had been discussed as early as 1947, and by 1955, the government was laying the groundwork for the establishment of the Bank of Ghana.

By the end of 1956, the infrastructure was in place, and a modern five-storey building on High Street was prepared to house both the Bank of Ghana and the Ghana Commercial Bank (GCB).

Governance and Leadership

The first governor of the Bank of Ghana was Alfred Eggleston, a Scottish banker with extensive experience in central banking.

He was supported by deputy governor Douglas F. Stone, who was seconded from the Bank of England. Together, they oversaw the early administration of the bank.

The general administration was managed by a seven-member board of directors under the chairmanship of the governor.

A list of notable governors who have shaped the direction of the Bank of Ghana includes Hubert Kessels, W.M.Q. Halm, and Ernest Addison, the current governor, who took office in 2017.

Bank of Ghana’s Key Functions

As Ghana’s central bank, the Bank of Ghana is responsible for formulating and implementing the nation’s monetary policy.

Key functions include stabilizing the value of the currency, regulating and supervising the banking and credit systems, and promoting financial stability.

The bank also issues currency notes and coins, ensures the smooth operation of financial systems, and acts as the financial adviser to the government.

Additionally, the Bank of Ghana plays a crucial role in international monetary relations, ensuring the country’s financial integration into the global economy.

Recent Developments and Controversies

In recent years, the Bank of Ghana has been in the news due to various high-profile developments. One notable controversy in 2019 involved the revocation of GN Bank's license, leading to a lawsuit filed by Dr. Papa Kwesi Nduom and others against the Bank of Ghana.

The dispute centered around the issue of license revocation, with the Bank of Ghana asserting that such matters should be resolved through arbitration, not through the court system.

Another major issue arose in August 2023 when the Bank of Ghana announced plans to build a new 13-storey headquarters. The decision received mixed reactions.

While some government officials and civil society organizations expressed strong opposition, citing the current economic challenges, others, including the Deputy Minister for Trade, defended the move. The controversy led to calls for the resignation of the Bank’s leadership.

Awards and Recognition

In recognition of its efforts and achievements, the Bank of Ghana was awarded the prestigious title of Best Central Bank at the seventh Central Banking Awards in October 2020.

As Ghana’s central bank, the Bank of Ghana continues to play a fundamental role in shaping the nation’s financial and economic landscape, despite the occasional controversies that come with managing the country's economic policies in a dynamic global environment.