The Governor of the Bank of Ghana, Johnson Asiama, has stated that Ghana’s economy was in an unstable condition when the administration of John Dramani Mahama assumed office.
According to Dr Asiama, the current economic management team had to undertake extensive consultations and groundwork to understand the depth of the challenges before implementing policy measures.
“It’s been a lot of work, a lot of thinking, and a lot of listening. We listened more to Ghanaians and designed our policies accordingly. When we came in, we did a lot of preparatory work and knew exactly what we were walking into,” he said.
He likened the situation to inheriting a patient who had undergone prolonged treatment under a different doctor, suggesting that the economy required careful and deliberate intervention.
Dr Asiama identified high inflation and exchange rate volatility as major indicators of the economic difficulties at the time.
“Remember the macroeconomic situation at the time—high inflation and exchange rate volatility. From 2022, a lot of liquidity was injected into the system,” he explained.
Using a medical analogy, he added that the economy had been overwhelmed by excessive liquidity.
“It was like a patient who had received excessive blood transfusions. Too much liquidity had been injected; no matter what you do, it won’t be effective. No matter the policies you implement, they won’t be effective,” he said.
The Governor noted that the Bank of Ghana had to take decisive steps to reduce excess liquidity in the system in order to stabilise the economy.
“We had to set to work to drain the excess liquidity from the system. That has come at a cost,” he added.
Dr Asiama’s comments come as authorities continue efforts to restore macroeconomic stability and rebuild confidence in Ghana’s economy.
Source: Wesleyannews.com
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