“The Bank of Ghana Faces Criticism from Minority in Parliament Over GH¢60 Billion Loss.
The Bank of Ghana has recently come under scrutiny and harsh criticism from the minority in parliament. The group raises concerns about the institution’s ability to fulfill its intended purpose effectively.
One of the major points of contention is the BoG’s inability to execute monetary policy without resorting to creating money. This practice has been a cause of frustration for the minority, leading them to question the bank’s effectiveness in managing the nation’s monetary affairs.
In a recent audited report, the Bank of Ghana disclosed a staggering loss of GH¢60 billion during its debt restructuring process. This revelation has further fueled the criticism, with Isaac Adongo, the Ranking Member on the Finance Committee, expressing disappointment in the government’s efforts to steer the economy in the right direction.
Adongo emphasized that all the money deposited in the Prudential Reserve, or what they refer to as the Bank of Ghana, has been squandered. Additionally, the funds borrowed in foreign currency to support the Cedi have been exhausted, leaving the Bank of Ghana with a significant GH¢22 billion shortfall, even after accounting for the GH¢48 billion in government debt. This situation indicates that the Bank is ill-equipped for its intended role as it struggles to implement monetary policy without resorting to printing money due to insufficient funds.
These concerns raised by the minority are sparking a wider debate on the effectiveness and management of the Bank of Ghana. As discussions continue, it remains to be seen how the government will respond to these criticisms and address the challenges faced by the central financial institution.”