Prof. John Gatsi writes: C’ttee investigating cedi depreciation taking over BoG powers

It is a consolidated fact that the management of the currency (Cedi), including investigations into the depreciation of the currency, is the constitutional mandate of the Central Bank of Ghana.

In article 183 (2)(a) of the Constitution, the BoG is mandated to promote and maintain the stability of the currency in the interest of economic management and progress of Ghana. Also, it is only the BoG that can disallow any forex exchange transactions.

In the spirit of the above provisions, the Committee set up to do the same work is alien to the constitution of Ghana and portrays the BoG as lacking what it takes to manage the currency to foster economic progress of Ghana.

The BoG is capable of effectively delivering on this mandate if the government aligns its policy decisions with the advice of the BoG, especially, relating to the fiscal policy including huge borrowings and the interest cost burden. There must be conscious coordination between the path of government and the BoG.

The new development may also send erratic signals to critical institutions, investors and financial journalists that currency management is hitting dry-hole in Ghana.

This development requires critical adherence to article 184 of the Constitution in which the BoG is required to present the report on currency management to the Finance Committee of Parliament for Parliament to monitor Forex developments and play a beneficial oversight role in currency management in Ghana.

The Constitution requires the BoG to present a semi-annual report to Parliament, on one hand, and currency management report to the Auditor General which will then be presented to Parliament for debate.

The layman’s understanding of debate, in this context, is that it is an open discussion about the currency based on a report from BoG. The question now arising is: how many times, in the past two years, has Parliament received this important report and debated on currency developments to ensure the progress of Ghana?

The government’s failure to follow the clear procedures provided in articles 183 and 184 regarding currency management in Ghana makes any FX Committee which is not set up by parliament problematic and also signals currency management failure by the BoG.

source|citinewsroom.com

Comments

CK Akonnor wins dismissal case against Kotoko, Ghanaian giants ordered to pay compensation

Asante Kotoko are expected to CK Akonnor a hefty compensation after the former coach won his case for wrongful dismissal against the club on Monday. The Player Status Committee has ruled the Porcupine Warriors breached the terms of his contract. The ex-Ghana international was sacked in July this year, just nine months into his three-year contract. He dragged the club to the Ghana Football Association demanding his 2 years salary, league trophy cash, and CAF Confederations Cup group stage entitlements. The Player Status Committee ruled that the club was not justified in terminating the contract of the former Hearts of Oak gaffer. Both parties are yet to be furnished with a copy of the ruling. Akonnor rejected an offer to head the club’s technical directorate and left his post under bitter circumstances. The gaffer had been in charge for a close to a year having had stints with Kotoko sworn rivals Hearts of Oak and regional rivals Ashantigold. He had also coached D...

Full History of the living Legend Dag Heward-Mills on Personality Library (Edition 1b)

Dag Heward-Mills was born on the 14 May 1963 to a Swiss mother and Ghanaian father (Nathaniel and Elizabeth Heward-Mills) in London, United Kingdom. He moved with his family soon after his birth to Accra Ghana and has spent his entire life in Ghana. He was converted to Christianity while having his secondary education at Achimota School. He joined Christian youth campaigns such as the Scripture Union as well as the Calvary Road Singers (which later became Harvest Chapel International immediately after his conversion. He proceeding to the University of Ghana Medical School, where he was trained as a medical doctor. He started the Light House Chapel International while still a student in Medical school, having felt a strong call of God to start a church. In his fifth year of Medical School, Dag started the church in a little classroom in the School of Hygiene, Korle-Bu, with no more than 15 members. Amidst persecutions in various forms and with his academic work dema...

Today In History: Kwame Nkrumah arrives in Guinea After the Coup

When news of the coup reached him, Nkrumah was in Peking (today’s Beijing) en route to the Vietnamese capital, Hanoi, with plans to end the American war in Vietnam. Leaders of four African countries sent Nkrumah immediate messages of support and invitations. They were the presidents of Egypt (Gamal Abdel Nasser), Mali (Modibo Keita), Guinea (Sekou Toure), and Tanzania (Julius Nyerere). Nkrumah decided to accept Sekou Toure’s invitation. The government of Guinea shared Nkrumah’s Pan-African objectives, encompassing the liberation of the African people from all forms of social injustice and economic exploitation. There also existed a strong brotherly bond between Nkrumah and Sekou Toure. In addition, Guinea was closest to Ghana, to where Nkrumah was determined to return to carry on his work. Sekou Toure came to the rescue of Kwame Nkrumah, the deposed of Ghana and invited him to Guinea where he arrived on March 2, 1966, together with his bodyguards and a few civil servants w...

FRANK ADDO NEWS LIVE

Search This Blog