BOG is fraudulent- Hon Kwarteng

The MP of the Obuasi West Constituency, Hon Kweku Kwarteng is accusing the Bank of Ghana (BoG) of fraudulent practices which is inconsistent with the economic status of the country.

Speaking on the Frontline, the MP who is a former Spokesperson of the Finance Ministry and an Economist noted that, the exchange rate posted by the Bank of Ghana is far low compared to the prevailing rates on the market. This practice according to Hon Kwarteng, is impacting negatively on the business community whose activities solely depend on the exchange rate of the Bank.

He explains that, the BoG declares the exchange rate based on the charges of the Commercial banks instead of the Banks’ average which gives the true reflection of the economic rates.

He noted that, at a point where the BoG declared GHC 3.00 to the dollar, the actual rate on the market was GHC 3.80 to the dollar.

He disputed the position of the data available to the BoG on the basis that, it is the market forces that determine the exchange rate and any attempt by the Bank of Ghana to do so would be fraudulent.

He was convinced that, this practice of ‘massaging’ the exchange rate is government’s deliberate effort to cheat cocoa farmers and other business entities of huge amount of money, since the declared rate by which government pays cocoa farmers, is less compared to the rates on the market.

Yet, the bank has refused to comment on this practice which undermines investor confidence and describes it as day robbery.