The Minority in Parliament is raising red flags over the Bank of Ghana’s sterilisation policy, describing it as harmful to the economy and calling for more innovative ways to manage inflation without stifling growth.
In a Facebook post, Kojo Oppong Nkrumah, Ranking Member on Parliament’s Economy and Development Committee, revealed that over GH¢60 billion has been sterilised (withdrawn from circulation) since January, a move the BoG says is meant to curb inflation caused by excess liquidity.
But Oppong Nkrumah argues the scale of this policy is counterproductive.
“You can’t just pack GH¢60 billion at the central bank while businesses are starved of capital,” he said.
He noted that the sterilised amount is nearly half the entire market cap of the Ghana Stock Exchange, and suggested that some of those funds be redirected to more productive uses like the Venture Capital Trust Fund, which supports startups and SMEs without burdening them with interest-heavy loans.
“Young people with great ideas could use this capital to create jobs and grow the economy. That’s far more impactful than locking the money away.”
He also proposed using the funds for zero-coupon equity financing through the stock market to help existing businesses scale up and create employment.
Oppong Nkrumah concluded with a warning:
“Sterilisation may offer temporary inflation relief, but once the money returns to the system, inflation will rise again. We need smarter, sustainable strategies not outdated fixes.”
