Bank of Ghana unfit for purpose – Isaac Adongo

Ranking Member of the Finance Committee in Parliament, Isaac Adongo, has criticized the Central Bank for its role in mismanaging the monetary affairs of the Ghanaian economy.

He believes that the recently published report detailing a GH¢60 billion loss recorded by the Central Bank shows that the financial sector regulator is unfit for purpose.

Addressing journalists outside Parliament after the presentation of the 2023 Mid-Year Budget Review on July 31, the lawmaker said the Central Bank has depleted most of its resources as captured in its 2022 audited financial statement.

“All the funds in our banks, which they compelled to save with the Bank of Ghana under the Prudential Reserve, have gone to waste. The foreign currency borrowed to support the Cedi has also been depleted. In fact, even if we deduct the GH¢48 billion government debt, the Bank of Ghana still faces a GH¢22 billion deficit,” the lawmaker said.

“This indicates that the Bank is inadequate for its role as it cannot execute monetary policies without resorting to printing money due to its lack of funds,” he added.

Meanwhile, the Bank of Ghana has come under intense criticism for recording huge losses on the back of government's domestic debt restructuring exercise, depreciation of the local currency and other factors.

According to the BoG's audited financial report for 2022, it recorded total liabilities exceeding its total assets by GH¢54.52 billion as of December 31, 2022.

MA/NOQ