Economist Professor Godfred Bokpin
Renowned economist Professor Godfred Bokpin has stated that the Bank of Ghana’s excessive money printing is harming the Ghanaian economy.
He explained that the injection of excess liquidity by the Central Bank, without corresponding investments in key sectors of the economy, leads to rising inflation, thereby worsening the plight of citizens.
Speaking on The Big Issue, aired on Accra-based Channel One TV, the University of Ghana economics lecturer urged the BoG to invest in the productive sectors of the economy to help curb inflation.
“If you look at Ghana and the injection of excess liquidity, at some point, the Central Bank even denied it. In 2022, the Domestic Debt Exchange included GH¢77.6 billion in overdraft lending to the Ghanaian government. What do you expect?
“The source of that excess aggregate demand is excessive printing and injection. Since it didn’t go to the productive sectors of the economy, it is unsurprising that inflation has risen,” he said.
Professor Bokpin further noted that the government’s efforts to address the situation through tiered reserve requirements to mop up excess liquidity are costly and should be reviewed for alternatives.
“The more you mop up excess liquidity, remember, it will have implications for access to credit by the private sector. The economy’s productive capacity hasn’t been enhanced in the last couple of years,” he added.
SB/MA
Watch the latest edition of BizTech below:
Click here to follow the GhanaWeb Business WhatsApp channel