Hot!
Many central banks have incurred loses; BoG is not exception – Ofori-Atta
Finance Minister, Ken Ofori-Atta, has stated that many central banks incurred losses as a result of the impact of Covid-19 pandemic and the Russian/Ukraine war on their respective economies.
Citing examples such as the Bank of Jamaica, the central banks of Argentina, Brazil, Chile, the Philippines, Singapore, Turkey, and UK, he also said historically, some central banks have operated with negative equity as a result of losses yet fully met their policy objectives, as long as they remain policy solvent.
In an article “Standing strong with the Central Bank”, Mr. Ofori-Atta pointed out that the pandemic and Russia-Ukraine war have reinforced and increased the number of central banks that have moved into negative equity and have thrown light into this ‘new normal.’
“Thus, the Central Banks of Chile, Czech Republic, Israel and Mexico have experienced years of negative equity. The Reserve Bank of Australia fell into negative equity in 2022 due to valuation losses on its bond holdings, and the bank stressed that it will not affect its mandate or operational efficiency. And unheard of in the modern financial setup, the German central bank, that citadel of fiscal purity, recorded a loss in 2022”, he added.
Furthermore, he pointed out that the US Federal Reserve Bank in April 2022 also declared a negative equity position, on account of the rapid rise in rates that began in 2022, renewed interest expenses on commercial bank reserves deposits, and low income on its security holdings, including US Government securities.
“In fact, as indicated by the Brookings Institution, “the Fed’s cumulative losses came to more than $52 billion as at the end of April 2022, exceeding its paid-in capital and surplus, and in effect, leaving it in negative equity.”
(I cite these examples just to make the point that hitherto unheard of things have been happening in central banks around the world recently.)”, he stressed
Accordingly, Mr. Ofori-Atta said as the focus shifts from direct targets of money supply to interest rates as operational targets, the framework for analysing central bank balance sheets has shifted, enabling central banks to play more interventionist roles in the economy than before.
Source: myjoyonline.com
Minority Leader in Parliament, Alexander Afenyo-Markin, says more than 15,000 Ghanaian workers have lost their jobs following a directive issued by the Chief of Staff.
According to him, the dismissals affected not only people employed after the 2024 general elections, as stated in the directive, but also workers who had been lawfully employed as far back as 2017.
Raising the issue on the floor of Parliament, Mr. Afenyo-Markin said the Minority uncovered evidence showing serious excesses in the implementation of the directive.
“We became aware that although the letter was specific to those recruited after the 2024 elections, Ghanaian youth who were employed as far back as 2017 were all dismissed from their lawful employment,” he said.
He explained that the Minority filed a motion in Parliament to investigate the matter, which was admitted by the Speaker. However, the process has faced several delays.
According to him, the Majority Leader raised a preliminary objection to the motion, which was upheld by the First Deputy Speaker. The Minority later filed a motion for review under the rules of Parliament, which was also admitted.
Mr. Afenyo-Markin said the review motion was moved by him and seconded by the Member of Parliament for Ofoasi- Ayirebi, while the Majority Chief Whip, Rockson Nelson Dafeamekpor , began the debate on behalf of the Majority side.
He noted that the House was expected to continue the debate the following Tuesday to allow the Speaker to rule on the matter, but this has not happened due to other parliamentary business.
“Several times the motion appeared on the Order Paper, but we could not take it,” he stated.
The Minority Leader stressed that the delay is having serious consequences for affected workers and their families.
“This is a matter that affects the livelihood of Ghanaians. We have in excess of 15,000 Ghanaian youths affected by this directive, and they are still at home,” he said.
He added that the Minister for Employment has acknowledged receiving petitions on the issue and has initiated investigations, but said that should not stop Parliament from carrying out its own inquiry.
“These Ghanaian youths are sitting at home. Their wives, their extended families are all affected. It has been over a year, and they are not getting any justice,” he added.
Mr. Afenyo-Markin appealed to the Leader of Government Business to ensure that the motion is included in Parliament’s report and debated to allow the House to make a final decision on the matter.
By: Jacob Aggrey
Director of Communications for the United Party, Solomon Owusu, has expressed strong disappointment following the Supreme Court decision to quash the rerun of the Kpandai parliamentary election.
Mr Owusu made his views known while reacting to the ruling, stressing that he would feel deeply disappointed if he were in the position of Matthew Nyindam, the current Member of Parliament for Kpandai.
He explained that the High Court had earlier examined the case in detail and arrived at a clear determination on the matter.
According to him, the High Court found that the election was compromised and that rigging took place with the involvement of the Electoral Commission.
Mr Owusu pointed out that when the New Patriotic Party moved the case to the Supreme Court, it did not challenge the substance of the High Court findings.
He stated that the appeal was based purely on a point of law, arguing that the National Democratic Congress was time barred when it went to court, and not that the alleged rigging did not occur.
In his view, this means that Mr Nyindam remains in Parliament through an election process that did not reflect the true will of the people of Kpandai.
Mr Owusu noted that this was why he had expected a rerun of the election, to allow the MP to return to the constituency and properly establish his authority through the ballot.
He explained that a rerun would have given Mr Nyindam the opportunity to prove that he genuinely won the 2024 parliamentary election.
With the rerun now quashed, Mr Owusu questioned how the MP could celebrate or take pride in the court outcome.
He stressed that he would no longer take contributions made by Mr Nyindam in Parliament seriously, as the legitimacy of his mandate remains questionable in his view.
Mr Owusu further argued that the Supreme Court decision has shortchanged the people of Kpandai.
He described the ruling as unfair to voters who woke up early on election day, queued patiently, and voted for a candidate of their choice, only for their will to be undermined.
According to him, the outcome raises serious concerns about justice, electoral credibility, and respect for the democratic rights of the people.
By: Jacob Aggrey
