FULL TEXT: BoG response to allegations of printing GH¢22 billion notes for government

The Bank of Ghana has responded to allegations indicating it has printed an amount of GH¢22.04 billion to finance government’s budget without parliamentary approval.

The assertion was made by the Deputy Ranking Member of Parliament’s Finance Committee, Dr. Cassiel Ato Forson when he addressed journalists outside the House on July 25.

But the central bank in its response clarified that the amount represents net claims on government and not new currency printed to support the government’s budget.

In a statement issued by the BoG, it also clarified that the net claims of GH¢22.04 billion as captured in the 2022 mid-year budget review has four components:

1. GoG Stocks and bonds sold by commercial banks to Bank of Ghana under repurchase agreements, by which banks routinely manage their liquidity positions;

2. IMF SDR allocation disbursed to Government through Bank of Ghana;

3. Draw-down of Government’s own deposits held with Bank of Ghana;

4. Negative balance on Government’s account with Bank of Ghana at a point in time, and self-liquidated as new Government deposits are credited to the account.

After providing further clarity on these components, the BoG assured the public that “in carrying out its functions as banker to Government, it is committed to complying fully with all relevant legal requirements.”

It added that the BoG’s operations are constantly guided by the requirements of the Bank of Ghana Act, 2002 (Act 612) as amended.

“As indicated in the Finance Minister’s speech, should the need arise for emergency financing by Bank of Ghana in line with the BoG Act, Bank of Ghana, as was done in the case of the COVID-19 Bond of 2020, will follow the processes prescribed by the Act,” the statement concluded.

Read the full response issued by the Bank of Ghana below: