Two leading figures vested in Finance in Parliament have clashed over the alleged printing of GH¢22 billion by the Bank of Ghana for injection into the economy.
Ranking Member on Finance, Dr. Cassiel Ato Forson first made the allegation on Monday and repeated same on the floor of Parliament on Tuesday blaming the rising inflation rate on that measure by the Central Bank
“In the 2020 budget, the project was that the government was going to take zero amounts from the Central Bank only for us to see that between January to June 2022, this administration has taken GH¢22 billion cedis from the Central Bank of Ghana. When the Bank of Ghana gives money to the government it is called printing of money and that is unacceptable.”
However, this was sharply rebutted by a Deputy Minister for Finance, Dr John Kumah who indicated that the stated amount is an overdraft advanced by the Bank to the government.
He indicated that there was nothing illegal about it.
“If you read section 30 of the Bank of Ghana Act, it is within the remit of the law for Bank of Ghana to grant overdrafts and support to the Central government without printing money.”
Minority spokesperson on Finance, Cassiel Ato Forson had accused the Governor of the Bank of Ghana (BoG) of printing more currency for the country without approval from Parliament.
The former Deputy Finance Minister said the BoG and government have perpetuated illegality which must be dealt with.
“Between January and June 2022, the Minister responsible for Finance and the government went to the Central Bank, and they encouraged the BoG to print money worth GH¢22 billion. They have printed GH¢22 billion fresh money without the knowledge of Parliament and without informing all of us”, he said.
Ato Forson said this is hidden on page 97 of Appendix 2a of the mid-year budget under the section on Bank of Ghana.