Dr. Ernest Addison, BoG Governor
Chartered economist Bernard Oduro Takyi, popularly known as BOT, has accused the governing New Patriotic Party (NPP) of converting critical buffers meant to stabilize the cedi into collateral for borrowing.
Speaking on the Ghana Yensom Morning Show hosted by Kaayire Otafrigya Kwesi Appea-Apraku on Accra 100.5 FM on Wednesday, December 4, 2024, Mr. Oduro Takyi alleged that these buffers, created during the Mills-Mahama administration, were specifically designed to maintain cedi stability.
He identified the Sinking Fund, the Heritage Fund, and the USLA Fund as some of the critical reserves that had been established under the previous administration.
According to him, the NPP government has converted these reserves into collateral to secure loans, but with little to show for it.
“This government has borrowed excessively and recklessly, to the point where all the buffers created to stabilize the cedi have been depleted.
Yet, they have nothing tangible to show for it,” he remarked.
Mr. Oduro Takyi highlighted the dire impact of this borrowing spree on the cedi, which he said is now trading at around GHS 17 to the US dollar.
“The depreciation of the cedi has not only discouraged international bondholders but has also eroded the confidence of domestic bond investors,” he stressed.
He described the economic management under the NPP as worrying, accusing the government of failing to address fundamental issues affecting the economy.
According to the economist, the buffers created during the Mahama administration were meant to mitigate cedi depreciation and maintain macroeconomic stability.
“These were forward-thinking measures to ensure the economy remained resilient, but the NPP has squandered them through borrowing,” he alleged.
Mr. Oduro Takyi urged the government to take responsibility for the current economic challenges, noting that the public’s focus in the upcoming election will heavily centre on the state of the economy.
“This year’s election is about the economy.
Ghanaians are looking for a government that can deliver sound economic management,” he concluded.
Watch the finance minister’s remarks at it latest monthly update on the economy below
