The former Central Regional Minister, Kwamena Duncan, has come to the defence of the Governor and Deputies of the Bank of Ghana (BoG) in the wake of a reported GH¢60 billion loss in 2022.
In a recent appearance on Peace FM’s Krokrokoo programme, Mr. Duncan lauded the Central Bank’s management record and highlighted that the global economic challenges had contributed to the unusual loss.
“You will recall that many people doubted if the economy was in crisis, because they did not hear about interest payment on bonds were not being paid in early 2022. They did not see queues at the pumps for petrol and diesel. There were no shortages for essential items on the market and they did not hear that public sector workers, including Civil Servants, the Police and the Military were not being paid their salaries. The reason was that the Bank of Ghana had provided the needed support to keep the economy going.
He noted that prior to 2022; the BoG had consistently registered profits. However, the positive streak was disrupted by the impact of global economic conditions that affected not only Ghana but also economies across the world.
The former Regional Minister underscored the gravity of the situation, which demanded comprehensive public policy initiatives to safeguard lives and livelihoods.
He said protecting lives and livelihoods at all costs required exceptional financing which the BoG had no option but to extend financial support to government to manage the situation.
He bemoaned the limited external funding available at the time to government and the necessity for BoG’s intervention as the lender of last resort.
Mr. Duncan noted that the BoG’s prudent management had equipped it with policy buffers and policy space, enabling the bank to trigger the emergency financing exception under Section 30(6) of the Bank of Ghana Act.
This exceptional measure, he said, involved the purchase of GHC10 billion of the Government’s Covid-19 bonds, bridging the financing gap.
Thus, he praised the BoG’s resilience and its fulfilment of the role in salvaging the economy from collapse.
