The Governor of the Bank of Ghana (BoG), Johnson Asiama, has stated that Ghana\u2019s economy was unstable when the John Dramani Mahama administration assumed office.<\/p>\n
Speaking in an interview with Bernard Avle on Channel One TV\u2019s The Point of View on Wednesday, March 25, Dr Asiama likened the situation to that of a patient who had been under prolonged treatment by another doctor.<\/p>\n
\u201cIt\u2019s been a lot of work, a lot of thinking, and a lot of listening. We listened more to Ghanaians and designed our policies accordingly. When we came in, we did a lot of preparatory work and knew exactly what we were walking into. It was like having a patient who had been under treatment for a long time by another doctor,\u201d he said.<\/p>\n
Dr Asiama pointed to high inflation and exchange rate volatility as key indicators of the economic challenges at the time.<\/p>\n
\u201cRemember the macroeconomic situation at the time\u2014high inflation and exchange rate volatility. From 2022, a lot of liquidity was injected into the system. It was like a patient who had received excessive blood transfusions. Too much liquidity had been injected; no matter what you do, it won\u2019t be effective. No matter the policies you implement, they won\u2019t be effective,\u201d he explained.<\/p>\n
He noted that the central bank had to take measures to mop up excess liquidity in the system, a process he said came at a cost.<\/p>\n
\u201cWe had to set to work to drain the excess liquidity from the system. That has come at a cost,\u201d he added.<\/p>\n