{"id":66636,"date":"2024-02-13T18:49:14","date_gmt":"2024-02-13T18:49:14","guid":{"rendered":"https:\/\/www.africa-press.net\/ghana\/?p=66636"},"modified":"2024-02-13T17:01:00","modified_gmt":"2024-02-13T17:01:00","slug":"bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude","status":"publish","type":"post","link":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude","title":{"rendered":"Bank of Ghana advancing money to govt was not the worry rather the magnitude"},"content":{"rendered":"

Africa-Press – Ghana. <\/strong><\/span>The Director of Research at the Institue of Economic Affairs (IEA), Dr John Kwakye, has told Vice President Dr Mahamudu Bawumia that it is not the fact that the Bank of Ghana (BoG) advanced money to the government during the economic crisis that is the issue because the Bank\u2019s Act provides for such advances up to 5% of the previous year\u2019s revenue. <\/b><\/p>\n

Dr Kwakye say it is rather the magnitude of the advance\u2014 over 50% of the previous year\u2019s revenue\u2014that is disturbing.<\/p>\n

Dr. Bawumia strongly defended the BoG during his address at the University of Professional Studies, Accra (UPSA) last Wednesday, February 7 for heavily monetising the fiscal deficit, especially in 2022.<\/p>\n

Dr. Bawumia commended the central bank for saving the economy from collapse at a time when Ghana had lost access to international capital markets.<\/p>\n

He indicated BoG\u2019s action was responsible and that it was temporary as the Bank had advanced money to Government in only two of the past seven years.<\/p>\n

\u201cThe Bank of Ghana provided needed financing to the government at a critical moment. What the BoG did was very responsible in putting the interest iof the citizens first,\u201d he said.<\/p>\n

Dr Kwakye noted that the Minister of Finance had expressed similar sentiments in the past, which was not surprising because Government was the direct beneficiary of the monetary financing.<\/p>\n

\u201cHowever, as central bankers, we know that the most inflationary source of financing the budget is high-powered money coming directly from the central bank vault. It is not the fact that BoG advanced money to Government that is the issue, for the Bank\u2019s Act provides for such advances up to 5% of the previous year\u2019s revenue.<\/p>\n

\u201cIt is the magnitude of the advance\u2014 over 50% of the previous year\u2019s revenue\u2014that is disturbing. It is no wonder inflation peaked at 54.1% in 2022\u2014and depreciation ballooned to 54.2% in November 2022, before falling bank to 30.0% in December 2022,\u201d he said.<\/p>\n

\u201cMeanwhile, as Government debt to BoG was also discounted under the DDEP, the Bank made a whopping loss of GHS61 billion and a record negative equity of GHS54 billion in 2022. Both the Minister and the Governor seem to have played down the loss as only a \u2018technical loss.\u2019<\/p>\n

\u201cHowever, the fact is that the Bank\u2019s balance sheet has been severely impacted, and this would force it to cut back on some of its important operations so as to save costs,\u201d he said in a write-up,\u201d he added.<\/p>\n

For More News And Analysis About Ghana<\/a> Follow Africa-Press<\/a><\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

Africa-Press – Ghana. The Director of Research at the Institue of Economic Affairs (IEA), Dr John Kwakye, has told Vice President Dr Mahamudu Bawumia that it is not the fact that the Bank of Ghana (BoG) advanced money to the government during the economic crisis that is the issue because the Bank\u2019s Act provides for […]<\/p>\n","protected":false},"author":84,"featured_media":66635,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2,5,7],"tags":[5092,5096,429],"class_list":["post-66636","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-all-news","category-economy","category-head-lines","tag-africa-press","tag-africa-press-ghana","tag-ghana"],"yoast_head":"\nBank of Ghana advancing money to govt was not the worry rather the magnitude - Ghana<\/title>\n<meta name=\"description\" content=\"The Director of Research at the Institue of Economic Affairs (IEA), Dr John Kwakye, has told Vice President Dr Mahamu ...\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Bank of Ghana advancing money to govt was not the worry rather the magnitude\" \/>\n<meta property=\"og:description\" content=\"The Director of Research at the Institue of Economic Affairs (IEA), Dr John Kwakye, has told Vice President Dr Mahamu ...\" \/>\n<meta property=\"og:url\" content=\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude\" \/>\n<meta property=\"og:site_name\" content=\"Ghana\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/AfricaPressTunisiaa\" \/>\n<meta property=\"article:published_time\" content=\"2024-02-13T18:49:14+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2024\/02\/sm_1707830909.738665.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"1513\" \/>\n\t<meta property=\"og:image:height\" content=\"894\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"cfeditoren\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"cfeditoren\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"3 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"Article\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#article\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude\"},\"author\":{\"name\":\"cfeditoren\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"headline\":\"Bank of Ghana advancing money to govt was not the worry rather the magnitude\",\"datePublished\":\"2024-02-13T18:49:14+00:00\",\"mainEntityOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude\"},\"wordCount\":434,\"commentCount\":0,\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2024\/02\/sm_1707830909.738665.jpg\",\"keywords\":[\"Africa Press\",\"Africa Press-Ghana\",\"ghana\"],\"articleSection\":[\"all news\",\"Economy\",\"head lines\"],\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"CommentAction\",\"name\":\"Comment\",\"target\":[\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#respond\"]}]},{\"@type\":\"WebPage\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude\",\"url\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude\",\"name\":\"Bank of Ghana advancing money to govt was not the worry rather the magnitude - Ghana\",\"isPartOf\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/#website\"},\"primaryImageOfPage\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#primaryimage\"},\"image\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#primaryimage\"},\"thumbnailUrl\":\"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2024\/02\/sm_1707830909.738665.jpg\",\"datePublished\":\"2024-02-13T18:49:14+00:00\",\"author\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\"},\"description\":\"The Director of Research at the Institue of Economic Affairs (IEA), Dr John Kwakye, has told Vice President Dr Mahamu ...\",\"breadcrumb\":{\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#breadcrumb\"},\"inLanguage\":\"en-US\",\"potentialAction\":[{\"@type\":\"ReadAction\",\"target\":[\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude\"]}]},{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#primaryimage\",\"url\":\"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2024\/02\/sm_1707830909.738665.jpg\",\"contentUrl\":\"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2024\/02\/sm_1707830909.738665.jpg\",\"width\":1513,\"height\":894,\"caption\":\"Bank of Ghana advancing money to govt was not the worry rather the magnitude\"},{\"@type\":\"BreadcrumbList\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#breadcrumb\",\"itemListElement\":[{\"@type\":\"ListItem\",\"position\":1,\"name\":\"Home\",\"item\":\"https:\/\/www.africa-press.net\/ghana\/\"},{\"@type\":\"ListItem\",\"position\":2,\"name\":\"Bank of Ghana advancing money to govt was not the worry rather the magnitude\"}]},{\"@type\":\"WebSite\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/#website\",\"url\":\"https:\/\/www.africa-press.net\/ghana\/\",\"name\":\"Ghana\",\"description\":\"Just another Africa News Agency Sites site\",\"potentialAction\":[{\"@type\":\"SearchAction\",\"target\":{\"@type\":\"EntryPoint\",\"urlTemplate\":\"https:\/\/www.africa-press.net\/ghana\/?s={search_term_string}\"},\"query-input\":{\"@type\":\"PropertyValueSpecification\",\"valueRequired\":true,\"valueName\":\"search_term_string\"}}],\"inLanguage\":\"en-US\"},{\"@type\":\"Person\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb\",\"name\":\"cfeditoren\",\"image\":{\"@type\":\"ImageObject\",\"inLanguage\":\"en-US\",\"@id\":\"https:\/\/www.africa-press.net\/ghana\/#\/schema\/person\/image\/\",\"url\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"contentUrl\":\"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g\",\"caption\":\"cfeditoren\"}}]}<\/script>\n<!-- \/ Yoast SEO Premium plugin. -->","yoast_head_json":{"title":"Bank of Ghana advancing money to govt was not the worry rather the magnitude - Ghana","description":"The Director of Research at the Institue of Economic Affairs (IEA), Dr John Kwakye, has told Vice President Dr Mahamu ...","robots":{"index":"index","follow":"follow","max-snippet":"max-snippet:-1","max-image-preview":"max-image-preview:large","max-video-preview":"max-video-preview:-1"},"canonical":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude","og_locale":"en_US","og_type":"article","og_title":"Bank of Ghana advancing money to govt was not the worry rather the magnitude","og_description":"The Director of Research at the Institue of Economic Affairs (IEA), Dr John Kwakye, has told Vice President Dr Mahamu ...","og_url":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude","og_site_name":"Ghana","article_publisher":"https:\/\/www.facebook.com\/AfricaPressTunisiaa","article_published_time":"2024-02-13T18:49:14+00:00","og_image":[{"width":1513,"height":894,"url":"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2024\/02\/sm_1707830909.738665.jpg","type":"image\/jpeg"}],"author":"cfeditoren","twitter_card":"summary_large_image","twitter_misc":{"Written by":"cfeditoren","Est. reading time":"3 minutes"},"schema":{"@context":"https:\/\/schema.org","@graph":[{"@type":"Article","@id":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#article","isPartOf":{"@id":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude"},"author":{"name":"cfeditoren","@id":"https:\/\/www.africa-press.net\/ghana\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"headline":"Bank of Ghana advancing money to govt was not the worry rather the magnitude","datePublished":"2024-02-13T18:49:14+00:00","mainEntityOfPage":{"@id":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude"},"wordCount":434,"commentCount":0,"image":{"@id":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2024\/02\/sm_1707830909.738665.jpg","keywords":["Africa Press","Africa Press-Ghana","ghana"],"articleSection":["all news","Economy","head lines"],"inLanguage":"en-US","potentialAction":[{"@type":"CommentAction","name":"Comment","target":["https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#respond"]}]},{"@type":"WebPage","@id":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude","url":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude","name":"Bank of Ghana advancing money to govt was not the worry rather the magnitude - Ghana","isPartOf":{"@id":"https:\/\/www.africa-press.net\/ghana\/#website"},"primaryImageOfPage":{"@id":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#primaryimage"},"image":{"@id":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#primaryimage"},"thumbnailUrl":"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2024\/02\/sm_1707830909.738665.jpg","datePublished":"2024-02-13T18:49:14+00:00","author":{"@id":"https:\/\/www.africa-press.net\/ghana\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb"},"description":"The Director of Research at the Institue of Economic Affairs (IEA), Dr John Kwakye, has told Vice President Dr Mahamu ...","breadcrumb":{"@id":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#breadcrumb"},"inLanguage":"en-US","potentialAction":[{"@type":"ReadAction","target":["https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude"]}]},{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#primaryimage","url":"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2024\/02\/sm_1707830909.738665.jpg","contentUrl":"https:\/\/static.africa-press.net\/ghana\/sites\/18\/2024\/02\/sm_1707830909.738665.jpg","width":1513,"height":894,"caption":"Bank of Ghana advancing money to govt was not the worry rather the magnitude"},{"@type":"BreadcrumbList","@id":"https:\/\/www.africa-press.net\/ghana\/all-news\/bank-of-ghana-advancing-money-to-govt-was-not-the-worry-rather-the-magnitude#breadcrumb","itemListElement":[{"@type":"ListItem","position":1,"name":"Home","item":"https:\/\/www.africa-press.net\/ghana\/"},{"@type":"ListItem","position":2,"name":"Bank of Ghana advancing money to govt was not the worry rather the magnitude"}]},{"@type":"WebSite","@id":"https:\/\/www.africa-press.net\/ghana\/#website","url":"https:\/\/www.africa-press.net\/ghana\/","name":"Ghana","description":"Just another Africa News Agency Sites site","potentialAction":[{"@type":"SearchAction","target":{"@type":"EntryPoint","urlTemplate":"https:\/\/www.africa-press.net\/ghana\/?s={search_term_string}"},"query-input":{"@type":"PropertyValueSpecification","valueRequired":true,"valueName":"search_term_string"}}],"inLanguage":"en-US"},{"@type":"Person","@id":"https:\/\/www.africa-press.net\/ghana\/#\/schema\/person\/068c7ab4e9634ae78ec5d54ec46598bb","name":"cfeditoren","image":{"@type":"ImageObject","inLanguage":"en-US","@id":"https:\/\/www.africa-press.net\/ghana\/#\/schema\/person\/image\/","url":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","contentUrl":"https:\/\/secure.gravatar.com\/avatar\/7417380fa9e23b5c57fdbfdaf3fdf92ee478f759a084addda5faa3732853e74a?s=96&d=mm&r=g","caption":"cfeditoren"}}]}},"_links":{"self":[{"href":"https:\/\/www.africa-press.net\/ghana\/wp-json\/wp\/v2\/posts\/66636","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.africa-press.net\/ghana\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.africa-press.net\/ghana\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/ghana\/wp-json\/wp\/v2\/users\/84"}],"replies":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/ghana\/wp-json\/wp\/v2\/comments?post=66636"}],"version-history":[{"count":0,"href":"https:\/\/www.africa-press.net\/ghana\/wp-json\/wp\/v2\/posts\/66636\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.africa-press.net\/ghana\/wp-json\/wp\/v2\/media\/66635"}],"wp:attachment":[{"href":"https:\/\/www.africa-press.net\/ghana\/wp-json\/wp\/v2\/media?parent=66636"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.africa-press.net\/ghana\/wp-json\/wp\/v2\/categories?post=66636"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.africa-press.net\/ghana\/wp-json\/wp\/v2\/tags?post=66636"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}