The Chairman of Parliament\u2019s Finance Committee and Member of Parliament for Bolgatanga Central, Isaac Adongo, has defended government monetary policy decisions, arguing that the measures were necessary to stabilise the economy and avert deeper macroeconomic challenges.<\/p>\n
His comments come amid scrutiny of the Bank of Ghana\u2019s 2025 financial report, which shows widening losses and negative equity. The development has prompted concerns from former Finance Minister Mohammed Amin Adam, who warned that the situation could place additional fiscal pressure on the state if government is compelled to recapitalise the central bank.<\/p>\n
Dr Amin Adam has argued that the Bank of Ghana\u2019s financial position presents potential fiscal risks, cautioning that persistent negative equity at the central bank could eventually increase public debt should government intervention become necessary.<\/p>\n
Speaking on The Point of View on Wednesday, May 6, Mr Adongo said the policy interventions were intended to address liquidity pressures and restore stability to key economic indicators.<\/p>\n
According to him, the measures played a critical role in easing pressure on inflation, the exchange rate, and interest rates at a difficult period for the economy.<\/p>\n
\u201cWe needed to do that to bring stability to bear on the inflation, to bring stability to bear on the exchange rate, to bring stability to bear on the interest rate,\u201d he stated.<\/p>\n
Mr Adongo further argued that current assessments of the economy should take into account the circumstances that informed the interventions, cautioning against judging the policies solely with the benefit of hindsight.<\/p>\n
\u201cSo of course now that we are comfortable anybody can say what they want to say,\u201d he said.<\/p>\n
He also questioned what the economic situation might have been if the measures had not been implemented, suggesting the country could have faced much higher inflationary pressures.<\/p>\n
\u201cWhat of the unlived experience if we hadn\u2019t done that,\u201d he asked.<\/p>\n
read also<\/p>\n