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This week,Confidence in Ghana’s financial system at risk as hundreds of protestors in Accra demanded the resignation of the Bank of Ghana governor and his deputies due to a loss of about 60 billion Ghanaian cedis ($5.2 billion) in the 2022 financial year.
The protest, known as #OccupyBoG and led by the opposition National Democratic Congress (NDC), saw demonstrators wearing red attire and holding banners with messages like “stop the looting, we are suffering.” The opposition alleges that the bank printed money illegally to lend to the government, resulting in currency depreciation and high inflation which they see as risking the country’s economy.
They also criticize the bank’s expenditures, including $762,000 on travel and $250 million on a new office building. The NDC accuses the central bank governor, Dr. Ernest Addison, of mismanagement, and Ghana faces its worst economic crisis in decades, with high inflation and downgraded credit ratings. The government’s default on debt payments led to an IMF bailout, but some creditors refused to participate in debt restructuring.
In August, the Bank of Ghana revealed that the government would not repay half of the $700 million borrowed from the bank and would not pay interest. This situation challenges the bank’s role as a lender of last resort and raises concerns about its ability to supervise commercial banks and maintain confidence in Ghana’s financial system.
