John Kumah
In response to false reports being circulated by the opposition political party, the National Democratic Congress (NDC), Deputy Finance Minister John Kumah has dismissed claims of the collapse of the Bank of Ghana (BoG) and the introduction of a recapitalization levy.
He emphasized that these baseless claims only serve to create panic and instability in the market.
In a post shared on his social media platforms, the Deputy Minister clarified that the Bank of Ghana remains strong and fully capable of fulfilling its core function.
He highlighted that the bank’s primary source of income is derived from government transactions, including fees and charges on all government transfers, investments in marketable instruments, and earnings from non-marketable holdings. Therefore, it is logical to expect a decline in the bank’s income due to reduced government transactions and debt restructuring.
To put things into perspective, Deputy Minister Kumah pointed out that a negative balance sheet by a central bank is not uncommon and can be an intentional strategy to achieve economic stability.
He referred to the Bank for International Settlements, which cites examples of central banks in Chile, Czech, Israel, and Mexico that have experienced negative capital while maintaining financial and price stability.
In emphasizing the importance of a central bank’s credibility, Kumah noted that losses can sometimes be necessary to achieve long-term goals, citing the views of experts Nordstrom and Vredin.
He urged against engaging in unfounded propaganda and baseless attacks on the Bank of Ghana, urging the public to support its efforts to drive economic development in line with the constitutional mandate outlined in Article 183 clause 2 (c) of the 1992 constitution.
The Deputy Finance Minister expressed concern that such unwarranted attacks on the central bank only serve to heighten market volatility, trigger panic selling of assets, and potentially disrupt the overall economic stability of the nation.
He stressed the need for accurate information and urged the public to have faith in the stability and resilience of the Bank of Ghana.
In conclusion, Deputy Finance Minister John Kumah’s statement strongly rebuts false claims surrounding the Bank of Ghana and reaffirms its strength and capability to fulfill its mandate.
He calls for unity and support to drive economic development in the country, emphasizing that unwarranted attacks can have detrimental effects on the nation’s economic stability.
By Vincent Kubi