BoG caused the high inflation after printing GHS22 billion fresh money without Parliament approval – Minority

The Minority in Parliament is unhappy the Bank of Ghana (BoG) has printed new money to the tune of GHS22 billion without approval from Parliament.

Addressing the media in Parliament on Monday, January 25, Ranking Member of the Finance Committee of Parliament, Dr. Cassiel Ato Forson made the revelation about the printed new cedi notes.

According to him, the bad practice influenced by the Ministry of Finance is a contributing factor to the high inflation in the country at the moment.

“Between January and June 2022, the Minister responsible for Finance and the government went to the Central Bank, and they encouraged the BoG to print money worth GH¢22 billion. They have printed GH¢22 billion fresh money without the knowledge of Parliament and without informing all of us.

“I am saddened, no wonder inflation is galloping, no wonder that our reserves position is dwindling. Because when you create new money out of the thin air, what happens is that inflation will go up and obviously because it is new money, you will end up losing your reserves because there would be new consumption,” Dr. Cassiel Ato Forson told the media.

He warned that if the printing of money continues inflation could go higher and reach 50% by the end of the year.

“If this trend continues, I won’t be surprised that we will end the year with inflation of about 50 percent,” the Minority MP indicated.

Further sharing his thoughts on the 2022 Mid-Year Budget Review statement presented to Parliament, Dr. Ato Forson described it as empty.

According to him, it is an indication that Ghana is in deep shit as long as President Akufo-Addo’s government remains in power.