Ghana’s Parliament has passed amendments meant to tighten how the Bank of Ghana can finance government, as officials move to curb monetary financing and strengthen central bank safeguards.
Parliament’s Communications Directorate said lawmakers approved the Bank of Ghana (Amendment) Bill, 2025 on December 18, 2025. It said the bill sets a legal cap on monetary financing and defines narrow conditions for any exception.
Central bank financing cap: what Parliament passed
Parliament said the bill introduces a legal ceiling on the extent of financing the Bank of Ghana can provide for government operations. It also sets “exceptional circumstances” where the cap may be exceeded. Parliament said those exceptions will face strict conditions and oversight measures.
Ghana already limits temporary advances to government in law. Under the Bank of Ghana (Amendment) Act, 2016 (Act 918), the ceiling for such advances is five percent of the previous fiscal year’s total revenue.
What officials say will change in practice
In addition to the cap, Reuters reported that the amendments bar the central bank from buying government securities in the primary market. Reuters also reported that the bill narrows the definition of an emergency and limits any lending to exceptional cases, subject to approval and tighter rules.
Authorities have framed the changes as a way to reduce routine reliance on central bank support. They have also linked the reforms to credibility for monetary policy and investor confidence.
Oversight and recapitalisation provisions
Parliament said the bill also creates a mechanism for automatic recapitalisation if the central bank suffers significant losses. Parliament linked that measure to stronger institutional checks and continuity in central bank operations.
Link to Ghana’s wider reform agenda
The IMF’s programme documents for Ghana track developments around central bank financing and related reforms as part of macroeconomic stabilisation efforts. Officials have pointed to tighter rules as supportive of broader efforts to contain inflation and protect financial stability.
Parliament did not state an implementation date in its announcement, and the amendments will still require completion of the remaining legal steps before they take full effect.
