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NDC’s Kwaku Banahene makes false claims about Ghana’s import cover, monetary policy, and inflation rates

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A communicator for the National Democratic Congress (NDC), Kwaku Owusu Banahene, on Tuesday, January 31, 2023, appeared on the Platform Show hosted by Nana Yaw Kese on Peace FM, one of the most listened-to radio stations in Ghana. 

The show discussed Ghana’s economy, the domestic debt exchange programme and other economic matters. Mr Banahene made a couple of claims that needed to be fact-checked. The show streamed on Facebook, has received over 1,000 views. The shorter version of the show has been published on the station’s YouTube channel, where we sourced our claims.

Claim 1: Ghana’s monetary policy rate stood at 14% in 2016 before the National Democratic Congress left office (5:40-5:54).

Verdict: False. Data from the Bank of Ghana shows that the monetary rate before the NDC left office was 25.5%, not 14%.


Monetary policy controls the quantity of money available in an economy and the channels by which new money is supplied. For the Economic Times, monetary policy rate involves the management of money supply and interest to achieve macroeconomic objectives like inflation, consumption, growth and liquidity. 

The Bank of Ghana implements monetary policy to achieve price stability, and contribute to the promotion and maintenance of financial stability, thus making it the only institution that announces monetary policy rates. Currently, the monetary policy rate stands at 28%. This was announced in a press release on January 30, 2023 (page 7). 

But was the rate 14% before the NDC government left office in 2016? A thorough search of the Bank of Ghana data revealed that the rate was not 14% by the end of 2016. The last data published by the Bank of Ghana on the Monetary Policy in 2016 was November 21. The rate stood at 25.5%, not 14%.  

YearMonetary Policy Rate
January 2526%
March 2126%
May 1626%
July 1826%
September 1926%
November 2125.5%
Source: Bank of Ghana.

This is further captured on page 5 of the 2019 budget statement and economic policy. According to the statement, “The Bank of Ghana Monetary Policy Rate saw a year-on-year reduction from 25.5 per cent by the end of 2016 to 20 per cent by end-2017.”


The monetary policy rate was 25.5% in 2016, not 14%, as claimed by the NDC Communicator Kwaku Banahene.

Claim 2: Ghana is left with an import cover of six million dollars in its foreign reserve, equivalent to 1.4 months, making it six weeks (5:48-6:04).

Verdict: Mostly false. Even though Ghana’s import cover currently stands at 6.2 billion dollars, the Bank of Ghana reveals it is equivalent to 2.7 months (11 weeks), not 1.4 months (6 weeks).


An import cover measures the number of months of imports that can be covered with foreign exchange reserves available with the central bank of a country. It represents the number of months a country can continue to support its current level of imports if all other inflows and outflows cease. 

According to the International Monetary Fund, three months of import cover with favourable exchange rates is internationally accepted as a healthy reserve position. 

In a statement released by the Bank of Ghana on January 30, 2023, on page five of Ghana’s international reserves for importation currently stands at 6.2 billion dollars at the end of December 2022. It revealed that the 6.2 million dollars are equivalent to 2.7 months (11 weeks)  of import cover instead of the 1.4 months (6 weeks)  claimed by Mr Banahene.

“At the end of December 2022, the stock of Gross International Reserves stood at US$6.2 billion (equivalent to 2.7 months of import cover) from a stock position of US$9.7 billion (equivalent to 4.4 months of import cover) at the end of December 2021,” the statement said.

This is also evident in a news report published by the news agency on January 31, 2023. 


The claim that Ghana is left with an import cover of 6 million dollars in its foreign reserve, which is equivalent to 1.4 months (6 weeks), is false. 

Claim 3: Ghana’s inflation in 2017 was 15.4%, but it has ballooned to 54.1% (5:32-5:39).

Verdict: False. According to the Ministry of Finance and the World Bank, Ghana’s inflation in 2017 was 11.8 % and 12.5%, respectively, not 15.4%. 


DUBAWA focused on data from the Ministry of Finance and the World Bank. The World Bank, cites 12.5% as its inflation rate. And as captured on page 5 of the 2019 budget statement and economic policy of the Ministry of Finance, inflation in 2017 was 11.8%.

YearWorld Bank Ministry of Finance 
Source: Ministry of Finance/World Bank.

It is evident to note further that the 15.4%, as indicated by Mr Banahene, was the inflation rate for 2016 as quoted by the Ministry of Finance and not 2017.


The inflation rate for 2017 was not 15.4%, as claimed by the NDC’s Communicator, Kwaku Banahene. The World Bank and the Ministry of Finance quoted 12.5% and 11.8%, respectively. However, the 15%, as quoted by Mr Banahene, is instead the inflation rate for 2015. 

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