Stop printing money to finance government expenditure – Dr. Ato Forson

The Ranking Member on the Finance Committee of Parliament, Dr. Cassiel Ato Forson has asked government to stop printing money to finance government expenditure.

According to him, this practice, otherwise known as monetary financing, will render any attempt to curb inflation useless.

“Curbing inflation should be the top priority: Ghana does not want inflation to be entrenched, we need to confront inflation now before it becomes too late. The Bank of Ghana needs to anchor inflation expectation immediately. They should stop the printing of money otherwise known as monetary financing to finance government expenditure” he said.

Dr. Forson made the call at a public lecture ahead of an address by former President John Mahama on Thursday. The theme for the lecture was, ‘Building The Ghana We Want’.

He also suggested that the Bank of Ghana should call an emergency meeting of the monetary committee to increase the monetary policy rate to curb the depreciation of the Cedi.

To stem the rapid depreciation of our cedi the Bank of Ghana may have to call for an emergency monetary policy committee meeting and consider the need to hike the monetary policy rate, even if it is for purposes of signaling that somebody is in charge,” Dr. Forson noted.

The former Deputy Minister of Finance under the erstwhile Mahama administration, further recommended that “Government must prioritize and rationalize expenditure by cutting all unnecessary and frivolous expenditures.”

He also urged government to support the poor and the vulnerable in the country, “since the economic hardship is affecting them the most.”