44% of Ghana’s currency outside the banking sector alarming – MP

Forty-four percent of Ghana’s currency was in circulation outside the banking sector in 2022, Isaac Adongo, Member of Parliament for Bolgatanga Central has stated.

According to him, this indicates that the Central Bank is not on top of its game.

Adongo stated that the governor has been pretending to be calling back monies he intentionally pumped into the economy.

Speaking to journalists in parliament, he said: “As we speak today if we take money outside the banking sector, the monies that are sitting in people’s rooms, under people's beds and pillows, the monies that are sitting in people’s poly tanks, if you put all of them together, it grew by 44% just last year.

"It means that people are not keeping money in the banks and if you are a Central Banker when 44% of your money is outside the banking sector it simply means you cannot work as a monetarist in the country because everything must pass through the banking sector in order to succeed.

“Dr Addison if the job is too hard for you, resign. You keep increasing the policy rate, you keep increasing inflation, and pretend that you are calling those monies back and increasing the interest rate, business men cannot borrow everybody is in trouble and yet your liquidity is growing every time, where is that liquidity hiding?” he further explained.

Adongo also explained that the currency in circulation is one of the reasons people keep hoarding money in their homes.

“Currency circulation, as a result of you printing money like you need a money printing machine in his office, the currency circulation in 2022 grew by 42%, where did it come from? do we conjure those currencies? As we speak, the year, by April we were doing 36.8%. All you do is print money and throw them into the economy, and people grab them and head to their bedrooms,” he added.

SSD/DA

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