The Director of Communications at the Bank of Ghana, Bernard Otabil, has clarified that central banks worldwide have incurred losses in their efforts to achieve price stability, emphasizing that this does not equate to bankruptcy.
Otabil’s comments come in response to a planned protest against the Bank of Ghana’s Governors and Board, scheduled for July 30, 2024, led by the Member of Parliament for Bawku Central, Mahama Ayariga. Ayariga alleges that the Governor has embarked on a costly construction project for his personal residence, estimated at $40 million, and refuses to disclose the actual cost.
However, the Bank of Ghana has explained that the construction project is a bank duty post, awarded through proper procurement processes, and the cost and details can be obtained from the Public Procurement Authority.
Otabil emphasizes that central banks prioritize public good over profit and register negative equity in their quest for price stability, which does not imply insolvency. He highlights that the Bank of Ghana is policy solvent, as evident in its 2023 Annual Report and Financial Statements, which show a loss of GHS8 billion in 2023 due to efforts to reduce inflation.
Otabil explains that the Bank’s deficit is temporary and will be corrected over time, with international bodies like the IMF aware of the situation. He assures that the Bank follows strict budgetary and procurement processes, with all activities undertaken being budgeted and approved by the Board.
Otabil offers to provide further education on these technical matters, emphasizing that the Bank is committed to maintaining price stability to improve Ghanaians’ living standards. The Bank of Ghana’s clarification aims to address misconceptions and reassure the public of its commitment to transparency and accountability.
