Ghanaians have been asked not to brood over news being perpetrated over the negative liquidity of the central bank rendering it insolvent.
According to the Governor of the Bank of Ghana (BoG), realising the mandate of the bank is what its credibility is depended on but not to make profits.
Dr. Ernest Kwamina Yedu Addison, the BoG boss at a press conference Monday, August 21, 2023, set records straight on commentaries parading around the bank’s losses in 2022 and its liquidity position, indicated that, the policy mandate of the BoG is prioritised over profits.
He explained that the bank could be liquidity deficient but still be on track in getting its mandate, which is ensuring the welfare of the nation.
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“Let me end by reassuring the public on the policy solvency of the Bank of Ghana to achieve its statutory mandate going forward. Every central bank’s credibility depends on its ability to achieve its mandate.
“These technical losses do not jeopardize that ability and are sometimes the price to pay for achieving those aims. It is important that we place the central bank’s policy mandate ahead of profits.
“We must recognize the special character of Central Banks and the role they play in an economy. Central Banks are institutions of public policy and do not exist for profits but for national welfare and as such could have a negative equity position and continue to be policy effective,” he stated.
Meanwhile, Dr. Addison says pragmatic measures have been put in place to return the central bank’s equity to positive levels.
“Very clear policies have been put in place to return to positive equity in the medium term. And as we do this, we will continue to rebuild our policy buffers to continue to provide the necessary assurance of policy support as we rebuild a stronger and a more resilient and inclusive economic post pandemic,” he indicated.
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