The Central Bank has stated that it has not printed new currency of GHC 22.04 billion to support the 2022 budget, contrary to assertions by the Minority Ranking Member on Finance, Cassiel Ato Forson.
The BOG noted in a statement on Tuesday that the 22.04 as captured in the 2022 Mid-Year Budget Review statement represents net claims on the government, not the printing of new currency. The statement provided details of the net claims, including GoG stocks and bonds sold by commercial paper to the Bank of Ghana, IMF Special Drawing Rights (SDR), a drawdown of the government’s own deposit with the Bank of Ghana, and negative balances on the government’s account with the Bank of Ghana.
The Bank of Ghana assured the public it would carry out its mandate within the remits of the law and per the requirements of the Banking Act 2022, Act 612.
Following the presentation of the midyear budget by the Finance Minister, Ken Ofori-Atta, Mr. Forson told the press the BOG is set to print, without approval, some GHC 22.04 billion to finance the budget.
But responding to Mr. Ato Forson on the same platform, deputy Finance Minister, John Amponuah Kumah, dismissed the claims, asserting the BOG was only giving the government an overdraft, which is well within its rights and which does not require parliamentary approval.
“Section 30 of the Bank of Ghana Act allows the central government and BoG to operate on an overdraft basis. It is within the laws of this country, and so on the Bank of Ghana’s own balance sheet, they can give an overdraft to the government as a loan which can be repaid within a specified period,” he argued.
According to Mr. Kumah, similar privileges had been granted to the NDC administration in the past.
