Accra: The Bank of Ghana (BoG) has reaffirmed its commitment to zero monetary financing of government budgets, emphasizing that it will not resort to printing money to fund fiscal deficits to safeguard price stability and protect the cedi's value.
According to Ghana News Agency, in its 2025 financial statements, the Bank highlighted that this policy represents a decisive break from past practices where central bank financing of government spending contributed to rising inflation, currency depreciation, and a loss of purchasing power among households.
The Bank explained that refraining from monetary financing helps to prevent excess liquidity in the economy, which often fuels inflationary pressures and undermines confidence in the domestic currency.
"Adherence to zero monetary financing strengthens policy credibility and supports sustainable economic recovery, particularly by preserving the purchasing power of incomes and protecting vulnerable households," the statement said.