Professor James Atta Peprah, an economist with the University of Cape Coast (UCC), has raised concerns about the governor of the Bank of Ghana, Dr Ernest Addison, and the GH¢60 billion losses recorded by the Central Bank.
This loss stands in stark contrast to the profit of GH¢1.23 billion the bank achieved in the previous year (2021).
According to the Bank of Ghana, the losses were primarily attributed to the government’s domestic debt restructuring activities and the depreciation of the local currency, among other factors.
The BoG’s audited financial statement for 2022, released on July 28, revealed that as of December 31, 2022, the total liabilities of the central bank and its subsidiaries exceeded its total assets by GH¢54.52 billion.
Speaking on the Citi Breakfast Show on Tuesday, August 1, Prof. Atta Peprah opined that the Central Bank’s losses can be attributed to bad policies.
He added that as the Chairman of the Monetary Policy Committee, Dr Addison has a responsibility to explain to Ghanaians how a bank that was profitable in the previous year incurred such significant losses of GH¢60 billion.
His comments follow similar concerns about the management and performance of the Bank of Ghana raised by the Minority in Parliament, especially in light of the substantial losses reported.
The Minority is demanding answers and transparency from the governor regarding the factors that led to these losses and the measures being taken to address them moving forward.
Isaac Adongo, the Ranking Member on the Finance Committee, speaking after the Mid-Year Budget review expressed dissatisfaction over the losses of the Central Bank describing it as unfit for purpose.
He said: “All the funds in our banks, which they compelled to save with the Bank of Ghana under the Prudential Reserve, have gone to waste. The foreign currency borrowed to support the Cedi has also been depleted. In fact, 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.”
