Accra: Member of Parliament (MP) for Ofoase-Ayirebi, Kojo Oppong Nkrumah, has kicked against attempts by the central bank to rationalize the recent losses it incurred. He indicated that the claims that the losses incurred by the Bank of Ghana (BoG) were necessary to stabilise Ghana's economy were untenable, arguing that such financial setbacks could have been avoided with better policy decisions.
According to Ghana Web, speaking in an interview on Asempa FM, he challenged explanations attributed to the National Democratic Congress (NDC) regarding the central bank's losses. He stated that the claims that the Bank of Ghana's losses were incurred to save Ghana are not true, emphasizing that such huge losses are not required to stabilise the economy. Oppong Nkrumah outlined two main reasons he said have been offered for the losses. The NDC states that the losses came from two sources: about GHS16.7 billion spent on stabilising inflation through open market operations, and another GHS9 billion used to support the dollar.
He argued that the policy approach used to inject liquidity into the system was flawed and inherently loss-making. He mentioned that the formula used to pump money into the system was destined to bring losses and recalled highlighting this issue back in 2025, although it was denied at the time. Concerns raised by the opposition were later validated by external institutions, with the IMF eventually confirming the opposition's stance.
Oppong Nkrumah explained that distinctions between market intervention and intermediation are critical in understanding the role of the central bank, noting that intermediation is typically done by commercial banks, with the central bank stepping in only when necessary. He also revealed that early signs of losses had already emerged and warranted investigation, citing that losses were about GHS2.5 billion at the time, prompting calls for an investigation that were ultimately rejected by the majority in Parliament.
He criticized the policy framework underpinning the gold purchase programme, stating that before the NDC came to power, losses were not being made on these policies. He concluded by expressing concern over what he described as a lack of responsiveness to advice, emphasizing that there is a reluctance to listen to external counsel.