Dr. Bawumia should stop wasting our time and fix the economy – Kwakye Ofosu

A member of the National Democratic Congress (NDC) Communications team and former Deputy Communications Minister, Felix Kwakye Ofosu has called on the Vice President, Dr. Mahamudu Bawumia to fix the ailing Ghanaian economy to lessen the plight of Ghanaians.

According to him, Dr. Mahamudu Bawumia under his watch as the head of the economic management team has performed abysmally compared to the NDC government’s performance in 2016 with regards to the economy.

Kwakye Ofosu said that the current NPP government has recorded hyperinflation; the highest-ever public debt, which has collapsed the Ghanaian currency.

In a Twitter post on Tuesday, August 8, 2023, Kwakye Ofosu chided Dr. Mahamudu Bawumia for the unprecedented hardship he has inflicted on Ghanaians through the mismanagement of the economy and charged him to fix it.

“Bank of Ghana recorded a profit of GH¢ 709,482.00 in 2016 under the NDC as against a loss of GH¢60 billion in 2022, under Bawumia thus pushing the central bank into bankruptcy with a negative equity of GH¢ 55.1 billion.

“As Chair of the Economic Management Team, his results: bankruptcy, a collapsed currency, hyperinflation, the biggest ever public debt, debt default, worst credit ratings, widening budget deficits, unprecedented hardships, and many more. He should stop wasting our time,” he wrote on his Twitter page.


Background


The Bank of Ghana incurred a significant loss in 2022 largely as a result of the DDEP, its 2022 Annual Report, and Financial Statement have said.

According to the report, the central bank’s holdings of government debt were restructured whereas non-marketable holdings of Government of Ghana instruments including long-term stocks, a Covid-19 Bond, and overdrafts were subjected to a 50 percent haircut.

Bank of Ghana’s other claims (holdings of marketable instruments) were exchanged under similar terms as other financial institutions under the DDEP.

This led to an impairment of GH¢48.40 billion in 2022.

At the same time, the Central Bank incurred revaluation losses on its foreign assets and liabilities due to exchange rate depreciation. The impairments and revaluation losses led to a negative equity position of GH¢55.12 billion for 2022.

The report also stated that despite a healthy trade surplus, the balance of payments recorded a deficit of US$3.64 billion on account of significant net outflows in the capital and financial account.

This led to a drawdown of US$3.46 billion in Gross International Reserves from US$9.70 billion at end-December 2021 to US$6.24 billion at end-December 2022, providing 2.7 months of import cover.

The significant drawdown in reserves triggered immense currency pressures and the reduction in the Common Equity Tier 1 capital ratio to 5.5 percent, from 6.5 percent, and an increase in the maximum Tier 2 capital ratio to 3.0 percent, from 2.0 percent of total risk-weighted assets.


View the post below:

Bank of Ghana recorded a profit of GHS 709,482.00 in 2016 under the NDC as against a loss of GHS 60 billion in 2022,under Bawumia thus pushing the central bank into bankruptcy with a negative equity of GHS 55.1 billion. pic.twitter.com/v2RnjzMOfc

— Felix Kwakye Ofosu (@FelixKwakyeOfo1) August 9, 2023