An economist at the University of Ghana, Dr. Adu Sarkodie has defended management of the Bank of Ghana over the GH¢60.81 billion loss the apex bank incurred in the 2022 fiscal year.
Speaking to Bernard Avle on the Citi Breakfast Show on Citi FM, Dr. Sarkodie indicated that for the period under review, the Bank carried out its constitutional mandate well and so must not be lambasted.
“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 over the independence of the Bank of Ghana which he said can also be blamed for the lax provisions by management which made it possible for the government to borrow beyond 5 percent of its revenue in the year preceding 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.