Dr. Adu Sarkodie, an economist at the University of Ghana, has defended Bank of Ghana management following the GH¢60.81 billion loss the Central bank incurred in the 2022 fiscal year.
Dr. Sarkodie stated on Citi FM that for the period under review, the Bank successfully carried out its constitutional mandate and should not be criticized for it.
“The central bank is mandated to regulate the financial sector and influence GDP and employment, and they have done well on that level but the losses they made came from the fiscal side and were not the same as in the process of undertaking their core mandate and I don’t think we should entirely blame the BoG for undertaking their mandate.”
Dr. Sarkodie also expressed concern about the independence of the Bank of Ghana, which he claimed is also to blame for the management’s lax provisions that allowed the government to borrow more than 5% of its revenue in the year prior to 2022.
“Let’s take a look at the 5 percent financing balancing…their [BoG] independence is not there and that is something that will be worrying to any governor of the Bank of Ghana.”
“Part of the blame should be placed on foreign investors in selling government bonds and also independence of the Bank is key because it is baffling how the Bank suspended the 5 percent finance balancing that allowed the government to over-borrow,” Dr. Sarkodie added.
