NDC is right about GH¢22m new currency notes, IMF ‘affirmed it’ – Amoako Baah claims
Dr. Richard Amoako Baah, a former Political Science lecturer at Kwame Nkrumah University of Science and Technology (KNUST), has claimed that the opposition National Democratic Congress (NDC) is correct in its assertion that the Central Bank has issued new currency notes.
Following the mid-year budget review delivered by Finance Minister Ken Ofori-Atta, Ranking Member on the Finance Committee of Parliament Cassiel Ato-Forson claimed last week that the Bank of Ghana, BOG, had advanced the government more over GH22 million.
His assertion that the money was in the form of fresh banknotes that had been poured into the economy has been refuted by the government and the top bank.
The former lecturer said material at his disposal indicated that the NDC was stating the truth and that even the International Monetary Fund had implicitly affirmed the matter when he discussed it on Okay FM in Accra last week.
“It is true that the IMF has brought it up, but they do not do so in a way that is easy for people to understand in order to prevent any conflicts.
The Bank of Ghana is still financing the government, that is what they (the IMF) acknowledged. In order to self-finance, the government must approach them (BOG) for funding. Never let anyone mislead you.
He emphasized that the deputy finance minister’s statements that the amount was an overdraft were unsupportable to the degree that the BoG does not accept deposits like a typical bank.
“They assert that it is a government overdraft, that they are financing the government, that it is not limited to Ghana, and that it is a transitory mechanism in which extra money is printed to pay off internal obligations. However, the process is set up so that the money is taken out of the system immediately.
He continued, “Let no one imagine they can lie to us; they will turn to this same method when they are in need.
He asserted that the disclosure of the truth is only a question of time. “It is only a matter of time before the issue is made public because both the IMF and the printing company are aware of it. With a move like this, ratings will drop, and it is not good for the economy.”
Government is currently in talks with the IMF for an economic rescue plan amid an acute economic downturn that government partly blames on the impact of the COVID-19 pandemic and the Russia-Ukraine war.