Bank of Ghana speak on ‘illegal Ghc22 billion money printing’ claims

Bank of Ghana: Bank of Ghana deny 'illegally' printing Ghc22 billion new money

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Two hundred cedi notes and BoG Govnor Steven Addison

Bank of Ghana deny claims say dem print Ghc22 billion illegally to support govment budget. 

Dis be after minority lawmakers make allegations say de Governor of de Bank of Ghana (BoG) print new monies into de economy.

Reacting to de development, BoG say “de amount of Ghc 22.04 billion wey de minority dey talk about dey represent net claims on Government, no be new currency dem print to support Government budget.”

Central bank breakdown of net claims of Ghc 22.04 billion

Dem give breakdown of de net claims of Ghc 22.04 billion wey Govment get in four levels:

1. GoG Stocks and bonds sold by commercial banks to Bank of Ghana under repurchase agreements, which banks dey take routinely manage dia liquidity positions.

Under dis dem manage raise Ghc1.6 billion.

2. IMF SDR allocation disbursed to Government through Bank of Ghana.

Ghc6.2 billion of de amount which reflects on-lending of IMF SDR resources to Government, in line with de overall objective of de special SDR operation by de IMF.

3. Draw-down of Government’s own deposits held with Bank of Ghana.

Here dem get an amount of Ghc 2.85 billion which dey reflect a drawdown on Government own deposits held with the Bank of Ghana.

Dis dey include statutory funds like GET FUND, National Health insurance, District Assembly Common Fund and the Sinking Fund

4.  Negative balance on Government’s account with Bank of Ghana, wey self-liquidate as new Government deposits dem credit to de account to de tune of Ghc11.4 billion.

Bank of Ghana print Ghc22 billion illegally? Minister, expert react

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Minority accuse govment of illegal printing of Ghc22 billion

Ranking member on de Finance Committee for Parliament, Casiel Ato Forson talk say BoG release fresh currency notes into de economy. 

“Dem print Ghc22 billion fresh money without de knowledge of parliament” he talk de press. 

“Governor of de Central Bank engage in gross illegality and so in future if dem ask am to print money, he for come Parliament before he act” Ato Forson add. 

But speaking to BBC Pidgin, Information Minister, Kojo Oppong Nkrumah explain say de claims be false.

He explain say based on what dey de law books, BoG no dey need approval from parliament but dem for just report within seven days on de actions dem take in emergency situations.

What Ghana laws say about borrowing to govment

According to Bank of Ghana Act, 2002, “in de event of any emergency, de Governor, Minister and Controller and Accountant-General go meet to decide de limit of borrowing Govment go fit make and de Minister go submit report on de issue to Parliament” 

What dis dey mean be say de Minister for report to Parliament on de issue of govment borrowing in emergency situations. 

Information Minister, Oppong Nkrumah also be bunk claims say dem print Ghc22 billion.

He say BoG go clarify de matter give Ghanaians.

Financial Analysts say govment go fit do budget deficit financing, but dem for go through de right channels.

Expert, Dr Jibril believe say if govment continue to print monies, dis go cause inflation in de country.

NABCo programme go end in September

One key take out from de 2022 mid-year budget review statement be de decision of govment to end de Nation Builders Corps (NABCo) programme wey employ some 100,000 graduates.

He talk say govment over de period invest over Ghc2.2 billion in de programme for beneficiaries.

Dem encourage de beneficiaries to take advantage of other programs like de Youstart programme for entrepreneurs.

Leadership of NABCo beneficiaries however dey oppose de move.

Dem dey call on govmemt to pay dema unpaid salaries den recruit dem permanently into de public sector.

Different reactions dey emerge from de mid-year budget reading.

But expectations of Ghanaians be say govment go deal with de economic challenges in de second half of de year to reduce de pressure on citizens.