BoG printed GH¢22bn fresh notes without parliamentary approval

Minority spokesperson on Finance, Cassiel Ato Forson is accusing government and the Governor of the Bank of Ghana (BoG) of printing more currency for the country without approval from Parliament.

The former Deputy Finance Minister said the BoG and government have perpetuated an illegality which must be dealt with.

“Between January and June 2022, the Minister responsible for Finance and the government went to the Central Bank, and they encouraged the BoG to print money worth GH¢22 billion. They have printed GH¢22 billion fresh money without the knowledge of Parliament and without informing all of us”, he said.

Ato Forson said this is hidden on page 97 of Appendix 2a of the mid-year budget under the section on Bank of Ghana.

Speaking to journalists after Finance Minister, Ken Ofori-Atta presented the government’s mid-year budget to Parliament, Ato Forson said the new currency has resulted in the high inflation being witnessed in the country.

“I am saddened, no wonder inflation is galloping, no wonder that our reserves position is dwindling. Because when you create new money out of the thin air, what happens is that inflation will go up and obviously because it is new money, you will end up losing your reserves because there would be new consumption. If this trend continues, I won’t be surprised that we will end the year with inflation of about 50 percent,” he added.

He also urged the Governor of the Bank of Ghana not to repeat his unlawful action, but rather seek parliamentary approval when the need for the printing of fresh notes arises.

“I want to urge the Governor of the central bank that he has engaged in gross illegality and in future, if he is asked to print money, he should first come to Parliament before he acts.”

The Finance Minister’s review on Monday, July 25, did not see a request for new funds.

Ofori-Atta noted that current macroeconomic figures have suffered in recent times.

He also announced a return of road tolls on the Tema-Accra Motorway in the future and the end of the Nation Builders Corps programme, among others.

Find his full statement here

source: citi newsroom

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