Former Deputy Finance Minister, Dr. Cassiel Ato Forson has accused the government of encouraging the Bank of Ghana to print an amount of GH¢22 billion without Parliamentary approval.
According to him, the fresh currency notes were printed between January and June 2022.
The information, according to Dr Forson, is hidden on page 97 of Appendix 2a of the Mid-year budget under the section on Bank of Ghana.
“They have printed GH¢22 billion fresh money without the knowledge of Parliament and without informing all of us,” he said while addressing the press on Monday.
The Ranking Member on the Finance Committee of Parliament said the act is illegal and against the Bank of Ghana Act.
He indicated that the printing of the currencies has contributed to the rise in inflation, adding that “if this trend continues I won’t be surprised that we will end the year with inflation of about 50 per cent.”
“I am saddened, no wonder inflation is galloping, no wonder that our reserves position is dwindling. Because when you create new money out of the thin air, what happens is that inflation will go up and obviously because it is new money, you will end up losing your reserves because there would be new consumption,” he said.
As a result, he urged the Minister to return and deliver a new mid-year budget since the omission of the GH¢22 billion cedis is pervasive and scandalous.
He also had a word for the Governor of Bank of Ghana.
“I want to urge the Governor of the central bank that he has engaged in gross illegality and in future if he is asked to print money, he should first come to Parliament before he acts.”