Deputy Chief Executive Officer of the Ghana Tourism Development Company, Felicity Nelson, has attributed a significant portion of the Bank of Ghana’s reported losses to the Domestic Debt Exchange Programme (DDEP), describing the figures largely as “costs of economic stabilisation” rather than purely financial losses.
Speaking on GHToday on GHOne TV, she explained that policy decisions, including the debt restructuring exercise, contributed to the central bank’s financial position, but argued that these measures were necessary to stabilise the economy.
“A significant amount of the losses that Bank of Ghana has incurred is actually due to the DDEP,” she said, adding that such policy choices were made to address broader economic challenges.
Felicity Nelson, however, stressed that she does not speak for the Bank of Ghana and noted that the central bank has already provided its own explanations on the matter through various public engagements.
She further rejected suggestions that the central bank was not communicating adequately, insisting that Bank of Ghana officials have consistently engaged the public on its financial position.
According to her, central bank losses are not unique to Ghana, citing examples of similar situations in other jurisdictions, including Switzerland, where significant financial losses were recorded as part of economic stabilisation efforts.
Nelson argued that central banks, by design, may incur such costs in the course of fulfilling their core mandate of maintaining price stability, controlling inflation, and ensuring exchange rate stability.
“In this case, what we are seeing is not just losses, but costs of stabilisation,” she said.
She pointed to recent macroeconomic indicators to support her position, noting that inflation has declined significantly from about 23 percent to 3.4 percent, while lending rates have also fallen from around 30 percent to 20 percent.
According to her, these improvements reflect tangible benefits to citizens, including stable fuel prices and improved purchasing conditions.
Ms. Nelson also referenced currency movements, explaining that the appreciation of the Ghana cedi has affected the valuation of foreign reserves in cedi terms, even though the dollar value of reserves remains largely intact.
She added that this revaluation effect contributes to what appears in accounting terms as losses.
Citing economic experts, including Professor Festus Ebo Turkson, an external member of the Bank of Ghana Monetary Policy Committee since 2022, she argued that the reported losses should be understood within the context of economic stabilisation costs rather than outright financial mismanagement.
She maintained that discussions around the Bank of Ghana’s financial position should be grounded in broader economic outcomes rather than isolated figures, stressing that the stabilisation measures have delivered benefits to Ghanaian households and businesses.
Source: Starrfm.com.gh
