Prof. Steve Hanke, who is a Professor of Applied Economics at Johns Hopkins University and a Senior Fellow at the Independent Institute, has described the Governor of the Bank of Ghana and his performance as a masterclass in monetary mismanagement.
His reactions come on the back of the #OccupyBOG demonstration which started on Tuesday 3rd October 2023. Prof. Steve Hanke has been one of the most external, accurate, and objective speakers on Ghana’s economy just after COVID-19. He has maintained that the Akufo Addo-led government has failed to make the right decisions countless times, which has inevitably plunged Ghana’s economy into self-inflicted bankruptcy.
The #OccupyBOG demonstration was instigated by the BOG’s over GHS 60 billion recorded and reported for 2022.
The Bank of Ghana (BOG) reported a loss of GHS 60.8 billion in 2022. The main reason for this loss was the impairment of the holding of marketable government stocks and non-marketable government instruments, all of which were held in the books of the BOG.
This was due to a number of factors, including:
- The government’s domestic debt restructuring exercise (phase 1 and II), which resulted in a 50% haircut on the BOG’s non-marketable holdings of Government debt instruments.
- Price and exchange rate movements
- Impairments of Cocobod loans
The BOG’s loss in 2022 has been a matter of concern for many Ghanaians, as it is the first time in the bank’s history that it has reported a loss. However, the BOG has assured the public that the loss will not have any impact on its ability to fulfil its mandate.
Hon. Sam George has described Gov. Ernest Addison as a coward, following the failure of the governor to receive the petition. The protestors were ready to submit the petition to the Bank of Ghana only through its governor.
“The Governor is a COWARD” exclaimed Hon. Sam George at the #OccupyBoG march in Accra today. The Protestors are demanding the resignation of BoG Governor Ernest Addison.
The Minority leader in parliament, Hon Atto Forson described the action of the governor as disrespectful. The organizers of the #OccupyBOG demonstration refused to present their petition to a representative of the governor who was, according to the representative, his boss was in a meeting with the IMF at the time the protestors arrived.
The #OccupyBOG demonstration is expected to continue until Gov. Ernest Addison personally receives the petition personally.
“The Governor is a COWARD” exclaimed a Ghanaian protester at the #OccupyBoG march in Accra today. Protesters are demanding the resignation of BoG Governor Ernest Addison.
GOV. ERNEST ADDISON
= MASTERCLASS IN MONETARY MISMANAGEMENT.pic.twitter.com/oI9XvzfnAg
— Steve Hanke (@steve_hanke) October 3, 2023