According to Dr. Stephen Amoah, deputy minister of trade and industry, the National Democratic Congress (NDC) and its minority in parliament’s criticism of the Bank of Ghana (BoG) for the GH60.8 billion loss are unjustified.
According to Dr. Amaoh, the central bank has spelled out the issues’ root causes in great detail.
The Akufo-Addo administration was allegedly charged with laying the foundation for the financial sector’s collapse by Minority Leader Dr. Cassiel Ato Forson.
He claimed that because of the government’s careless handling of the economy, the Bank of Ghana is currently experiencing financial difficulties. He claimed the country had paid a price for its carelessness and poor management.
On Tuesday, August 8, he made these remarks at the National Democratic Congress’s (NDC) Moment of Truth press conference.
“The government of Ghana has so recklessly mismanaged the BoG,” he continued. The former deputy finance minister said, “The Bank of Ghana recorded a loss of GHS60.8 billion in 2022.”
The Bank of Ghana’s Governor, Dr. Ernest Addion, as well as his two deputy governors, were all called to resign by the Minority.
“We demand that the governor and his deputies resign immediately and within 21 days. If he doesn’t rule, we’ll march to occupy the government building to defend the Bank of Ghana. Accountability will be ensured by March, he said.
However, Dr. Stephen Amoah, a Member of Parliament for Nyiaeso and a guest on News 360 on TV3 on August 9, stated, “Whether NPP or NDC in government, we persist on trying hard to undermine the work that the other person or his fraternity is doing purely for political gain.
“Verify whether this custom or practice is followed elsewhere in the world. Marketable, nonmarketable, and COCOBOD instruments have all been identified by the Bank of Ghana as the resources or sources of all these risks.
John Kumah, a deputy minister of finance, had earlier urged Ghanaians to reject the Minority’s assertion that the Bank of Ghana had failed.
He claimed that the Bank is strong and capable of carrying out its primary job.
John Kumah, a congressman for Ejisu and a member of the Minority, responded to the Minority by saying, “Ignore this funny NDC Propaganda about the collapse of the Bank of Ghana (BoG).” BoG is a Rock! The NDC is hilarious! The Central Bank has not collapsed, hence it is untrue that a recapitalization charge is going to be implemented for BoG.
The bank’s investments in marketable securities, fees and charges on all government payments, as well as income from non-marketable holdings of the bank, are its primary sources of income. Government transactions have decreased, thus it stands to reason that the bank’s profits will also decrease. Additionally, the debt restructuring will result in lower earnings on their holdings of marketable and non-marketable bonds.
Beyond this, the Bank is strong and equipped to carry out its primary duty. There is nothing improper about the Central Bank’s measures to assist the government in reviving the economy because Article 183, clause 2(c), of the 1992 constitution mandates that the Bank of Ghana foster and promote economic development in the nation. It is crucial to emphasize once more that a central bank’s negative balance sheet is not exceptional; in fact, most central banks operate negative balances in order to achieve their broad economic anchor objectives. “History amply demonstrates this.” Several central banks suffered years of negative capital, including those in Chile, the Czech Republic, Israel, and Mexico, yet nonetheless fully achieved their goals. But throughout, there was continued price and financial stability. – Bulletin No. 68 of the Bank for International Settlements.
“According to Nordstrom and Vredin (2022), the credibility of a central bank is based on its capacity to carry out its responsibilities. Losses don’t put that capability in jeopardy and are occasionally necessary to accomplish its goals.
Such misinformation and pointless attacks on the central bank merely exacerbate market volatility, cause panic selling of assets, and have the potential to spark off a series of events that could jeopardize our nation’s overall economic stability.
Source: 3 News.com