Audio By Carbonatix
The former Chief Executive Officer of Dalex Finance Company, Ken Thompson, has stated that the current depreciation of the cedi and inflation being experienced are largely due to the Bank of Ghana's reckless provision of funds to the government to spend on non-productive ventures.
In an interview on Joy FM’s Super Morning Show on Monday, May 13, he criticized the Bank of Ghana's handling of monetary policy, highlighting its perceived lack of independence and tendency to collude with the government.
“They connive with the government under the guise that if they don’t give the government money the economy will collapse. They give the government huge sums of money, the government chops the money and then we are asked to pay for it through higher and higher taxation.”
Mr Thompson expressed concern over the significant sums injected into the economy by the Bank of Ghana in 2022, stressing the negative repercussions of funding non-productive ventures.
He emphasised the detrimental effects of such actions, including inflation, depreciation, and increased financial burden on citizens through higher taxation.
Unless these issues are addressed, Mr Thompson warned, Ghana's economic progress will stagnate.
He urged for a shift towards productive investment and fiscal responsibility to mitigate the ongoing challenges and steer the country towards sustainable growth.
“Money given to the government which is not backed by productivity leads to inflation, depreciation, and makes us poorer"he noted.
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