The Minority Leader, Dr. Cassiel Ato Forson, has accused the Bank of Ghana of being responsible for the depletion of the country's external reserves.
Presenting the Minority's response to the 2023 mid-year budget review in Parliament, Dr. Ato Forson attributed the unprecedented depreciation of the Cedi and hyperinflation in 2022 to the Bank of Ghana's printing of money.
He highlighted that the Cedi's value fell from GH¢6:$1 to over GH¢15:$1 in 2022, constituting a more than 100% depreciation. This, along with inflation, has led to adverse effects on the economy, pushing many into poverty.
The World Bank estimated that around 850,000 people were driven further into poverty due to inflation in 2022.
Dr. Ato Forson claimed that despite earlier denials, the government now acknowledges that the Bank of Ghana printed money to finance excessive government expenditures.
He pointed to data from the IMF Staff Report indicating that the Bank of Ghana printed over GH¢45 billion (7.2% of GDP) in 2022 alone, and GH¢35 billion in 2021.
Describing the Central Bank as a “crime scene,” he held both the government and the Bank's management responsible for the economic situation.
The Minority Leader also highlighted that under the current management, Ghana's public debt surged from GH¢120 billion in 2016 to GH¢600 billion by the end of 2022.
Dr Ato Forson noted the collapse of Ghana's financial sector, with 23 banks recording massive impairment losses of over GH¢18 billion in 2022 alone. He underlined that the situation has caused significant economic damage and unprecedented costs.
In 2022, the Bank of Ghana reported a loss of over GH¢60.8 billion and negative equity exceeding GH¢55.1 billion, indicating major financial distress requiring immediate attention.