{"id":2652,"date":"2026-05-05T19:29:48","date_gmt":"2026-05-05T19:29:48","guid":{"rendered":"https:\/\/parliamentnews360.com\/?p=2652"},"modified":"2026-05-05T19:52:26","modified_gmt":"2026-05-05T19:52:26","slug":"majority-fires-back-stabilisation-is-working-go-to-the-market-check-lending-rates","status":"publish","type":"post","link":"https:\/\/parliamentnews360.com\/index.php\/majority-fires-back-stabilisation-is-working-go-to-the-market-check-lending-rates\/","title":{"rendered":"Majority Fires Back: \u201cStabilisation Is Working \u2014 Go to the Market, Check Lending Rates\u201d"},"content":{"rendered":"\n

By Clement Akoloh<\/p>\n\n\n\n

The Majority Caucus has rejected the Minority\u2019s GHS 44bn \u201ccollapse\u201d narrative, saying BoG\u2019s 2025 results are \u201cthe cost of stabilisation\u201d and the benefits are already in the market.<\/strong><\/p>\n\n\n\n

\u201cDon\u2019t Just Debate \u2014 Go Verify the Prices<\/strong>\u201d<\/em>
Responding to claims that \u201cstability of numbers doesn’t match stability of livelihoods,\u201d the Majority spokesperson on Economy and Development, Dr. Eric Afful said at a press conference in Parliament on Tuesday, May 5, 2026:<\/p>\n\n\n\n

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\u201cPlease take your time and go to various markets in the country\u2026 Go and do your own research. Go and compare the prices. In 2024 especially the food basket. Go there. You see the difference. Go to a construction industry. You see the difference.\u201d<\/p>\n<\/blockquote>\n\n\n\n

He pointed out the sustained disinflation from 23.8% \u2192 5.4% \u2192 3.2% by March 2026<\/em> is real and visible in food and construction costs. \u201cYou can\u2019t just throw this into the public\u2026 Go there. Take your pen and paper\u2026 objectively.\u201d<\/p>\n\n\n\n

On Sterilization & \u201cWealth Transfer to Banks\u201d<\/strong><\/em>
Minority argued GHS 16.7bn OMO and GHS 14.6bn interest paid to banks killed private credit. Majority countered this when Hon. Dr. Eric Afful, the Chairman of the Economy and Development Committee, Hon.Dr. Eric Afful said:<\/p>\n\n\n\n

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\u201cThey\u2019re talking about liquidity\u2026 The government is even ready to inject more liquidity into the system. Now go to the commercial. With fifteen percent interest rate. What does it mean? It means that the government is not borrowing<\/em>.\u201d[banks]<\/p>\n\n\n\n

\u201cThe commercial banks are holding their money. They don’t know where to invest. So they’ll like to come to you. Your businesses. See areas which is free from risk. They’ll come to you and give you the loan\u2026 put you more liquidity. And the more money get the hands of people, business will grow into increased employment<\/em>.\u201d<\/p>\n<\/blockquote>\n\n\n\n

His argument is that Sterilization worked. Inflation fell, cedi strengthened 42%, and now lending rates are down to \u223c15%<\/em>. Gov\u2019t borrowing less so banks are forced to lend to private sector. Credit should rise, not fall.<\/p>\n\n\n\n

\u201cLoss = Cost of Stabilisation, Not Insolvency\u201d<\/strong><\/em>
Sammy Gyamfi, GoldBod CEO, on Newsfile May 2:<\/p>\n\n\n\n

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\u201cThe Bank of Ghana has not made any losses. What has been described as a GHS 15.6bn loss is largely the cost of stabilisation<\/em>.\u201d<\/p>\n<\/blockquote>\n\n\n\n

Reason: Cedi appreciation in 2025 reduced value of FX assets in cedi terms \u2192 accounting losses. In 2024 when cedi weakened, BoG booked gains. \u201cWithout this revaluation effect, the central bank\u2019s losses would have remained closer to the previous year\u2019s figure of about GHS 9 billion.\u201d<\/p>\n\n\n\n

Atta Issah, MP Sagnarigu, added: Combining GHS 15.6bn operating loss + GHS 19.3bn \u201cother comprehensive income\u201d + GHS 9.6bn gold to get GHS 44bn is \u201cincorrect accounting.\u201d Negative equity of GHS 93bn dates to 2022 DDEP, not 2025. \u201cCentral bank solvency is not commercial bank.\u201d<\/p>\n\n\n\n

On Process & Politicisation<\/strong><\/em>
Kojo Oppong Nkrumah had accused NDC of bypassing Parliament by announcing BoG\u2019s accounts politically: \u201cThat is why we are warning the governor and the president that the involvement of politics in the dealings of BoG could collapse the bank.\u201d<\/p>\n\n\n\n

Majority counters that BoG\u2019s statements were \u201cexternally audited, fully disclosed, compliant.\u201d Prof. Peter Quartey commended BoG for \u201cbeing open about its financial position.\u201d<\/p>\n\n\n\n

Results Majority Is Pointing To:<\/strong><\/em><\/p>\n\n\n\n

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  • Inflation<\/em>: 23.8% \u2192 5.4% \u2192 3.2% by March 2026<\/li>\n\n\n\n
  • Cedi<\/em>: 42% appreciation, strongest performer globally<\/li>\n\n\n\n
  • Reserves<\/em>: 111 tonnes gold accumulated vs <1 tonne in 2021<\/li>\n\n\n\n
  • Lending rates<\/em>: Falling toward \u223c15% as gov\u2019t reduces domestic borrowing<\/li>\n\n\n\n
  • Policy solvency margin<\/em>: Positive GHS 5.5bn<\/li>\n\n\n\n
  • <\/li>\n<\/ul>\n\n\n\n

    Source: parliamentnews360.com<\/p>\n","protected":false},"excerpt":{"rendered":"

    The Majority Caucus has rejected the Minority\u2019s GHS 44bn \u201ccollapse\u201d narrative, saying BoG\u2019s 2025 results are \u201cthe cost of stabilisation\u201d and the benefits are already in the market.<\/p>\n","protected":false},"author":2,"featured_media":2653,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51,1],"tags":[982,1194,1588,1587,1585],"class_list":{"0":"post-2652","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-general-news","8":"category-news","9":"tag-bank-of-ghana","10":"tag-bog","11":"tag-economy-and-development-committee","12":"tag-hon-dr-eric-afful","13":"tag-negative-equity"},"yoast_head":"\n\n\n\n\n\n\n\n\n\n\n\n\t\n\t\n\n\n\t\n