President John Dramani Mahama has reaffirmed his commitment to maintaining fiscal discipline, assuring the newly sworn-in Governor and Deputy Governor of the Bank of Ghana (BoG) that his administration will not resort to reckless money printing to finance government expenditure.
Speaking at the swearing-in ceremony of Dr. Johnson Asiama as Governor and Dr. Zakaria Mumuni as Deputy Governor at the Jubilee House, Mahama emphasized the dangers of excessive and unregulated central bank financing, which he warned has had devastating consequences on Ghana’s economy in recent years.
During his address, President Mahama cautioned against the government’s reliance on excessive money printing to finance unsustainable consumption and expenditure. He outlined the severe economic consequences of such actions, including spiraling inflation, erosion of incomes, and the impoverishment of millions of Ghanaians.
“When government resorts to unsustainable consumption, expenditure, financed by excessive and unregulated printing of money, the consequences can be severe. From spiraling inflation, erosion of incomes to driving millions into poverty, such actions not only weaken public confidence in financial institutions but also threaten long-term stability.”
President John Dramani Mahama
In a firm declaration, Mahama assured the central bank’s leadership that his administration would uphold sound monetary policies, saying, “One thing for sure, I’m not going to come and ask you to print more money.”
Ghana’s Economic Challenges and the Role of the BoG
Mahama’s comments come at a time when Ghana’s economic management has been under intense scrutiny, particularly regarding the Bank of Ghana’s past role in financing budget deficits. In recent years, excessive money printing has been linked to rising inflation, currency depreciation, and declining purchasing power for citizens.
The Bank of Ghana has, at times, been accused of overstepping its monetary policy mandate by providing excessive overdraft support to the government. This, critics argue, has contributed to macroeconomic instability and weakened the credibility of the country’s financial institutions.
Prof. Bokpin’s Perspective on Inflation and Economic Productivity
Renowned economist Professor Godfred Bokpin has echoed concerns about the impact of excessive money printing on Ghana’s economic challenges. He attributes the country’s rising inflation to the injection of excess liquidity into the economy and the government’s failure to invest in productive sectors.
“If you look at Ghana and the injection of excess liquidity, at some point, the Central Bank even denied it. In 2022, if you look at the Domestic Debt Exchange, we were talking about GH¢77.6 billion by way of overdraft lending to the Ghana Government. What do you expect?”
Professor Godfred Bokpin
According to him, Ghana’s high inflation has been fueled more by unchecked money printing than by real economic productivity. He warned that continuous monetary tightening—such as raising interest rates—without addressing structural economic issues would only stifle private sector growth rather than provide lasting solutions to inflationary pressures.
The Bank of Ghana plays a crucial role in maintaining economic stability through its monetary policies. With Dr. Johnson Asiama and Dr. Zakaria Mumuni now at the helm, expectations are high that the central bank will implement policies that prioritize inflation control while fostering economic growth.
Mahama’s reassurance that his administration will not pressure the BoG to print money signals a commitment to restoring economic discipline. However, experts argue that fiscal responsibility must go beyond monetary policy and include broader structural reforms, such as increasing investment in productive sectors, reducing public debt, and improving revenue generation.
For Ghana to achieve long-term stability, analysts suggest that the government must focus on policies that promote industrialization, boost exports, and enhance the overall competitiveness of the economy. Sound fiscal management, coupled with prudent monetary policies, will be essential in addressing inflationary pressures and restoring investor confidence.
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