Chartered Banker and Financial Analyst Prince Obiri Yeboah says President John Dramani Mahama’s pledge to commit to fiscal discipline and not ask the Bank of Ghana to engage in reckless money printing to finance government expenditure is positive news.
The analyst said that if achieved, it will go a long way in ensuring stability in the economic space.
Speaking on Nyankonton Mu Nsem on Rainbow Radio 87.5FM, he posited that excessive and unregulated Central Bank financing has serious consequences for our fragile economy.
It is for this reason that he has noted that the president ought to deliver on this pledge since that will ensure fiscal stability.
President John Dramani Mahama has assured the newly sworn-in Governor and Deputy Governor of the Bank of Ghana that his administration will not resort to reckless money printing to finance government expenditure.
Speaking at the swearing-in ceremony of Dr. Johnson Asiama and his deputy, Dr. Zakaria Mumuni, Mahama stated firmly, “One thing for sure, I’m not going to come and ask you to print more money.”
Mr. Obiri Yeboah, reacting, said that “we have in the past witnessed excessive money printing, which increased inflation and the high cost of living. Our high inflation rate can be attributed to the unchecked printing of money. So the president has promised not to instruct the bank to do that; we must commend him for that.”
“It would be recalled that the then minority, led by Dr. Cassiel Ato Forson, accused former Governor Dr. Ernest Addison of recklessly printing money for the government to fund expenditure. This situation led to unprecedented levels of inflation in 2022. So if Mahama has promised not to instruct the Central Bank to recklessly print money, it is an assurance we must commend him for.
Anytime the Bank of Ghana engaged in the reckless printing of money, it created serious consequences for the country, including a hike in inflationary figures. By law, the Bank of Ghana must seek approval from Parliament before printing money. It should not engage in reckless printing since it will disrupt the economy, as money printing has no correlation with economic growth.
If President Mahama is able to do this, it will ensure financial discipline, economic growth, job stability, and growth. He is also sending a signal to the Ghana Revenue Authority (GRA) to intensify its mobilisation agenda to rake in more revenue for the country, especially from those not paying their taxes.”
By: Rainbowradioonline.com/Ghana
