President John Dramani Mahama has reaffirmed his commitment to 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 and deputy, Dr. Zakaria Mumuni at the Jubilee House, President Mahama warned against the dangers of excessive and unregulated Central Bank financing, which he said has had devastating consequences on Ghana’s economy in recent years.
When government resorts to unsustainable consumption, expenditure, finance 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, ” he cautioned.
“One thing for sure, I’m not going to come and ask you to print more money,” Mahama stated firmly.
Mahama’s remarks come in the wake of concerns about Ghana’s economic management, particularly over the Bank of Ghana’s recent history of financing budget deficits. In previous years, excessive money printing has been linked to rising inflation, currency depreciation, and declining purchasing power for citizens.
Meanwhile, renowned economist, Prof. Godfred Bokpin, has attributed Ghana’s rising inflation to excessive money printing by the Central Bank and the government’s failure to invest in the productive sectors of the economy.
Speaking on the country’s economic challenges on The Big Issue on Channel One TV on Saturday, February 22, 2025, Prof. Godfred Bokpin pointed to the injection of excess liquidity as a major trigger for inflation, warning that continuous monetary tightening without addressing structural issues will stifle private sector growth.
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?” he questioned.
According to Prof. Bokpin, Ghana’s high inflation has been fueled mainly by the unchecked printing of money rather than real economic productivity.
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