Bank of Ghana insists on not printing money to pay depositors of collapsed financial institutions, here's why

January 31, 2020 3:50 PM

The Bank of Ghana (BoG) has emphasised that it will not print money to pay up customers whose funds have been locked up in some of the collapsed financial institutions.

The new cedi notes

According to the central bank, that although the bank is committed to paying depositors locked-up funds, printing money has not been part of its plans as it has the potential undo all that the bank has achieved over the past couple of years.

BoG comment follows suggestions from analysts and economists that it should print money to pay up customers of the collapsed financial institutions.

“Government has already decided we should pay, so you leave that to us and we would pay. But we are not going to pay by printing money as has been suggested; because printing money to do that would not help anybody. If you print money you are going to cause inflation; you are going to devalue your currency,” the Governor of the Bank of Ghana, Dr Ernest Addison said while speaking to journalists.

“At the end of the day, all of us will not gain anything out of that. So, it is important that we are able to this without resorting to printing money,” he stated.

Also, he added that the receivers of the collapsed institutions are still going about the responsibilities to recoup the loans advanced by the defunct institutions.