NEWS

BoG clears air over NDC Minority accusation

In response to the Bank of Ghana’s 2022 published annual report and financial statements, there has been some concern among Minority group in Parliament and the National Democratic Congress (NDC) regarding the bank’s reported loss of GHC 60.8 billion.

The Bank of Ghana has explained that this large loss is due to the impairment of the holding of marketable Government stocks and non-marketable instruments of Government, as well as the bank’s exposure to COCOBOD.
The bank served as the loss absorber to the entire debt exchange program, which allowed the Government of Ghana to meet the threshold for the approval of the IMF program.

Despite the significant loss and negative equity position of GHC 55.1 billion, the Bank of Ghana assures the public that structures are in place to ensure that the bank remains policy solvent and well able to deliver on its primary mandate. Some central banks have operated with negative equity yet fully met their objectives, and the success of central bank interventions should always be judged on whether they fulfill their mandates of price and financial stability.

The Bank of Ghana also explains that the large jumps in key expenditure lines reflected the sharp increase in inflation and depreciation of the cedi, which impacted the bank’s operations as well as other entities in Ghana.
The bank’s expenditure lines were also affected by its core functions of distributing currency to every corner of the country and supervising regulated institutions.

Lastly, the Board and Management of the Bank of Ghana have considered a new Head Office building as the most important priority project to support the operational efficiency of the Bank and position Ghana as the financial hub of the subregion with prospects of hosting a future regional Central Bank.

 

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