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BoG should not entirely be blamed for GH¢60.81bn loss – Adu Sarkodie

Tue, 1 Aug 2023 Source: Maxwell Ampong

The University of Ghana economist, Dr.

Adu Sarkodie has defended the administration of the Bank of Ghana regarding the GH60.81 billion loss incurred during the fiscal year of 2022.

Sarkodie asserted that, during the period under review, the Bank carried out its constitutional mandate competently and thus should not be criticized.

"The central bank is tasked with regulating the financial sector and influencing GDP and employment, and they have performed admirably on those fronts.

However, the losses they incurred on the fiscal side were not the same as those incurred while carrying out their core mandate, and I do not believe we should blame the BoG solely for carrying out their mandate."

Sarkodie also expressed concern regarding the independence of the Bank of Ghana, which he attributed to the management's negligent provisions that allowed the government to borrow more than 5 percent of its revenue in the fiscal year preceding 2022.

"Let's consider the 5 percent financing balancing...Their [BoG] independence is lacking, which is cause for concern for any governor of the Bank of Ghana."

"Foreign investors should bear some responsibility for the sale of government bonds, and the Bank's independence is crucial because it is puzzling that the Bank suspended the 5 percent finance balancing requirement, which allowed the government to overborrow," said Dr.

Source: Maxwell Ampong