General News of 2014-08-22

BoG must respond to Bawumia’s allegations – Economist

Economist, Dr. John Gatsi has charged the Bank of Ghana (BoG) and the Ghana Statistical Service (GSS) to immediately respond to Dr. Mahamudu Bawumia's allegations that the latest inflation and exchange rate data were forged.

Dr. Bawumia, a former Deputy Governor at the Central Bank, in a statement alleged that the data on exchange rates from the BoG and inflation from the GSS were not credible.

According to him, the two institutions were creating a false impression that the exchange rate data has remained fixed over the last three months, adding that a look at the reported inflation numbers suggests that “something is not right.”

He said the cedi is trading between Ghc3.7 to 4.1 contrary to the BOG’s insistence that the exchange rate is Ghc3.02 to the dollar.

Dr. Bawumia noted that the GSS’ data on inflation suggests that price increases in 2014 are slower than they were in 2013, which according to him is inaccurate.

The allegations, Dr. Gatsi maintains, could affect the credibility of the two institutions.

He explained that the two institutions are mandated by law to provide the precise data on exchange rates and inflation; therefore if an individual raises concern over existing figures, it should be a great source of worry.

He suggested that for the avoidance for doubt, the BoG and the GSS must respond directly to Dr. Bawumia’s accusations.

This, he said, must be done in the shortest possible time in order not to erode the trust Ghanaians have in the two state institution.

“He was a former Deputy Governor of the Bank of Ghana and a running mate to the largest opposition party who is doing everything possible to come to power. It is not a small accusation,” he said; adding that the government must not “trivialize the allegations.”

Dr. Gatsi charged Dr. Bawumia to state the basis for his allegations against the BoG and GSS.

He said the onus lies on Bawumia, the GSS and the BoG “to protect the credibility of the financial sector in the country by coming out to tell us what the real issue is.”

Source: citifmonline.com
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