Economist, Prof Lord Mensah has backed the Minority’s call for the resignation of the Bank of Ghana Governor and his deputies.

Speaking on Joy FM’s Top Story on Tuesday, Prof Mensah explained that the call is in the right direction.

According to him, finance, law and economics go together, therefore in areas where laws do not work, no good financial trend is seen, and the same applies to the economy.

“The call is justified. From where I sit, it is a good call,” he said.

The Minority in Parliament has called for the immediate resignation of the Governor of the Bank of Ghana (BoG), Dr Ernest Addison and his deputies within 21 days.

The Minority Leader, Dr Cassiel Ato Forson accused the governor of incompetence in managing the bank, adding that the bank has virtually collapsed.

He claimed the Governor has recklessly mismanaged the institution, bringing it to its knees and that he cannot continue to lead without being held accountable.

Read also: https://myjoyonline.com/bog-governor-deputies-must-resign-within-21-days-minority/

Prof Mensah in response stated that the governance autonomy of the central bank is compromised per the structure of the constitution once presidents appoint governors.

He said the last straw the country is holding is the bank's operational autonomy, which is now being abused by the current governor.

This, he indicated is due to the fact that the central bank is not supposed to meddle in physical activities such as printing monies to finance government policies.

According to him, the bank is “expected to channel available funds through the monetary structures.”

“The Bank of Ghana must always ensure that it uses monetary channels to get things done. The monetary channels are always through the banks. Nowhere else,” he stressed.

Read also: https://myjoyonline.com/banks-wrote-off-5-9bn-as-bad-debt-in-2022/

Prof Mensah stated that when the Central Bank lends money, there should be a time limit after which the money should be returned.

For this reason, he indicated that the Central Bank printing money and later waiving off the money is quite questionable.