Accra: Two Development Economists have suggested that enhancing financial inclusion and reducing charges on mobile money could mitigate the losses faced by the Bank of Ghana (BoG) in its efforts to control inflationary pressures. According to Ghana News Agency, the economists argue that by retaining more funds within banks and formal financial channels, including mobile money, the Central Bank's need to absorb excess liquidity through open market operations would be eased, potentially reducing its financial losses. The Development Economists, Professor Peter Quartey, Acting Director of the Legon Centre for International Affairs and Diplomacy (LECIAD), and Dr. Daniel Anim-Prempeh, Chief Economist with the Policy Initiative for Economic Development (PIED), discussed this in an exclusive interview. Their comments followed the Central Bank's report of significant losses in 2025, which included an Operating Loss of GHS15.63 billion and an Other Comprehensive Income (OCI) loss of GHS19.32 billion. These losses h ave raised concerns over the high cost of stabilizing the Cedi and the broader economy. The losses incurred by the Bank were attributed to the costs of open market operations and the Domestic Gold Purchase Programme, with the appreciation of the Cedi causing further OCI losses on foreign reserves and increasing negative equity from GHS61.32 billion to GHS96.28 billion. Prof Quartey explained that keeping money within the financial ecosystem, including digital wallets, could reduce the need for Central Bank interventions. He emphasized the benefits of individuals investing in long-term bonds and other financial assets, which banks can then utilize to support production and manufacturing growth. Prof Quartey also highlighted the increasing use of mobile money among unbanked Ghanaians, noting the rise in digital transactions after the removal of the e-levy. He advocated for financial literacy and collaboration with telecom companies to lower mobile money charges, suggesting that even small reductions could sig nificantly impact the amount of cash the BoG needs to manage. Dr. Anim-Prempeh agreed that the Central Bank's losses were linked to its inflation control measures and recommended adopting more organic stability measures. He warned against over-reliance on heavy Central Bank spending, which could erode public confidence in stabilization efforts. Dr. Anim-Prempeh further encouraged the strengthening of industries to produce exportable goods and reduce imports, which he described as a realistic approach to sustaining the currency.
- May 15, 2026
