¢60bn loss: BoG toothless without printing money – Adongo says Prudential Reserve, borrowed FX ‘wasted, depleted’

The Bank of Ghana lack funds and, thus, cannot perfrom its monetary policy role without printing more money, Mr Isaac Adongo, the Ranking Member of Parliament’s Finance Committee has said.

Reacting to an audit report that revealed that the central bank lost GH¢60 billion through the debt restructuring exercise, Mr Adongo told journalists after Finance Minister Ken Ofori-Atta delivered his mid-year budget review on Monday, 31 July 2023, that: “All the funds in our banks, which they compelled to save with the Bank of Ghana under the Prudential Reserve, have gone to waste”.

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“The foreign currency borrowed to support the cedi has also been depleted”, he alleged.

“In fact”, the Bolgatanga Central MP insisted, “even if we deduct the GH¢48 billion government debt, the Bank of Ghana still faces a GH¢22 billion deficit”.

“This indicates that the Bank is inadequate for its role, as it cannot execute monetary policies without resorting to printing money due to its lack of funds.”

Source: Classfmonline.com