General News of 2014-08-24

Economist backs Bawumia's dare of BoG inflation figures

Economist and Head of Finance Department, Ghana Business School, Godfred Bokpin has backed Dr. Mahamudu Bawumia’s claims that exchange rates and inflation figures are not credible.

He asserted that there was a 23% variation in the figures published by the Bank of Ghana (BoG).

“From January to May, there wasn’t so much of a wide variation, but then, from June to July, the disparity between the Bank of Ghana’s official rate and the interbank rate jumped. For instance, the percentage difference between the two rates from July was almost 23%,” he explained.

A former Deputy Governor of the Central Bank, Dr. Bawumia questioned the credibility of the exchange rates and inflation figures being published by the BoG and the Ghana Statistical Service (GSS).

Industry players have urged the two institutions to respond to the allegations to put the minds of Ghanaians at ease.

However, the two are yet to officially issue a response on the matter.

On Citi FM’s The Big Issue, Mr Bokpin noted that the disparities in the figures suggest that “one market was dead and was not responding to the demand and supply dynamics. So either the Bank of Ghana did not update its own data, or perhaps, it was an oversight.”

He added that at certain times, “all we need to generate in the needed market is trust. If you want to look at the market value of trust just look at its absence.”

Mr. Bokpin urged authorities to be transparent in their dealings to allow them generate market trust and also admonished the Central Bank to provide clarification on this disparity.

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