Ghana’s Central Bank Governor Defies Opposition’s Call to Resign

Ghana’s central bank governor, Dr. Ernest Addison, has dismissed the opposition’s demand for his resignation, saying he has no intention of stepping down. The opposition lawmakers staged a massive demonstration in Accra on Tuesday, accusing Dr. Addison and his deputies of mismanaging the bank and printing money to fund the government’s spending.

They also blamed the central bank for the losses it incurred in 2021, which they claimed were due to the impairment of its debt holdings and the construction of a new headquarters. However, Dr. Addison, in an interview with an international business website, Central Banking, said the demonstration was “completely unnecessary” and that he and his deputies were determined to remain in their roles. He said the opposition had many channels to express their grievances in civilized societies, not through demonstrations in the streets as hooligans.

He also refuted the allegations of printing money, saying the bank provided monetary financing in 2020 and 2022 to address specific crises, which was legal under central bank law. He explained that the impairment of the bank’s debt holdings that resulted in losses in 2022 was a requirement for the International Monetary Fund (IMF) programme, and that the bank did not forgive any debts.

He added that the decision to commence construction of the new headquarters was made in 2019 when the bank was profitable and had allocated some of its profits for the project . “It was not a choice made in a time of crisis,” he said. Dr. Addison’s defiance comes amid growing tensions between the ruling party and the opposition, which have been locked in a legal battle over the disputed presidential election results of 2020.

The opposition leader, John Mahama, has refused to concede defeat and has challenged the validity of the vote count in the Supreme Court. The court is expected to deliver its verdict on Thursday, which could either uphold or overturn President Nana Akufo-Addo’s victory. Analysts say the outcome of the case could have significant implications for Ghana’s political stability and economic recovery.

Ghana is widely regarded as one of Africa’s most stable democracies and a model of economic development. The country has been praised for its effective response to the COVID-19 pandemic, which has kept its infection and death rates relatively low. The central bank has also played a key role in supporting the economy during the crisis, by cutting interest rates, providing liquidity to banks and businesses, and implementing relief measures for households.

Dr. Addison said he was confident that Ghana would overcome its current challenges and continue to grow and prosper. He said he was committed to fulfilling his mandate as the central bank governor and ensuring price stability and financial stability in the country. He also expressed his gratitude to his staff and colleagues for their hard work and dedication. “I am proud of what we have achieved together,” he said.

Source[ GhanaWeb]