Mahama Pledges Fiscal Discipline: No Pressure on BoG to Print Money

John Mahama, the leader of the National Democratic Congress (NDC), has pledged not to pressure the Bank of Ghana (BoG) to print money should he win the 2024 presidential election. His statement comes amid concerns about the central bank’s role in financing government deficits, which has contributed to rising inflation and economic instability. Mahama’s promise aims to uphold the independence of the BoG and prevent excessive money supply, which could further weaken the economy.

In recent years, the BoG has been criticized for its involvement in funding government expenditures, a move that some believe has worsened inflation and devalued the cedi. By committing to fiscal responsibility, Mahama signals a shift in approach, aligning with calls from economic experts who advocate for a more disciplined financial strategy. His stance suggests that his administration would prioritize prudent economic management to restore stability.

This assurance also serves as a political strategy, drawing a contrast between Mahama’s economic policies and those of the current government. By highlighting fiscal discipline, he seeks to win the confidence of both local and international stakeholders interested in Ghana’s economic recovery. If fulfilled, his pledge could boost investor confidence, reduce inflation, and strengthen the country’s financial sector. However, the key challenge will be finding alternative ways to bridge fiscal gaps without resorting to excessive borrowing or monetary expansion.