The Deputy Ranking Member on Parliament’s Finance Committee, Isaac Adongo, has stated that the Bank of Ghana is to blame for the Ghana cedi’s depreciation.
According to him, the printing of new notes is the reason the cedi has been falling in recent times.
He noted that when the money supply is high, the cedi keeps falling.
“The key issues have to do with the failure of the Bank of Ghana. The Bank of Ghana is entrusted with the responsibility for price stability. The Bank of Ghana has the responsibility to maintain what we call the Inflationary Targeting Framework, which is built around making sure that the government does not unnecessarily borrow from the Bank of Ghana to finance the budget,” he is quoted by citinewsroom.com.
Adongo stated that the Bank of Ghana has been printing more money in recent times in a bid to finance government expenditures.
“Last year, the Bank of Ghana lent to the government about GH¢35 billion. By May this year, it lent an extra GH¢22 billion. This has put a lot of money into the economy. These monies are monies that are chasing the dollar everywhere. Once there is so much cedi chasing the dollar, the dollar has to run faster to save itself. This is why we are here. The Bank of Ghana has failed in all forms, and I am surprised people are pushing for the sacking of Ken Ofori-Atta and not Mr. Addison. Both of them have teamed up to derail our economy and compromise our future,” he said.
Isaac Adongo MP for Bolga Central