The Senior Vice-President of IMANI Africa, Mr Kofi Bentil, has attributed the recent stability and appreciation of the Ghana cedi in part to the gold-purchasing policy introduced by the former Vice-President and current flagbearer of the New Patriotic Party (NPP), Dr Mahamudu Bawumia.
Sharing his views on the current market trends in a Facebook post on Thursday, 8th May, Mr Bentil acknowledged that while global economic dynamics, including monetary policy shifts in the United States, are influencing currency markets, it is the domestic measures particularly Ghana’s gold-reserve policy, that are playing significant roles in strengthening the local currency.
He argued that “The cedi is appreciating because the US government is acting in ways that are devaluing the dollar”
He explained further that the policy of accumulating gold reserves and leveraging them to support the currency is having a tangible impact on Ghana’s forex market.
According to him, successive governments have contributed to building Ghana’s gold reserves, but recent measures under the current administration have seen a portion of those reserves converted into foreign exchange and injected into the economy, thereby supporting the cedi’s value.
“This government has also added to the gold reserves, but a check of the numbers will reveal that most of what was purchased by this government has been sold for forex which has been pushed into the system and it’s shoring up the cedi,” he said.
Mr Bentil praised the foresight of Dr Bawumia in spearheading the gold-for-reserve initiative, noting that the continuation and enhancement of the policy under the current government, led by former President John Dramani Mahama, demonstrate a commendable level of policy consistency.
“This policy of gold purchase started in the last government and was pushed by DMB [Dr Bawumia], and fortunately has been continued by this government under JM [John Mahama]… Both governments deserve praise,” he stated.
He stressed that Dr Bawumia’s role as the originator of the policy must be duly acknowledged, noting that the passion and vision he brought to the initiative had laid the groundwork for its success.
Mr Bentil urged all stakeholders to avoid politicising the recent gains of the cedi and instead work together to sustain the momentum.
“I pray even more that this effort will not be politicised and bastardised, but all brains and efforts from both sides… will be tapped to sustain it,” he said.
Furthermore , he stressed the importance of continuity in governance, pointing out that no single administration could singlehandedly transform the nation.
“No government will develop Ghana alone. It will take all governments… working in a chain or baton relay to move us forward. Let’s build together,” He noted
The gold-purchasing policy, which enables the Bank of Ghana to purchase gold locally in exchange for foreign currency, has largely been lauded by market watchers as a strategic intervention to bolster the nation’s reserves, reduce reliance on the US dollar, and improve macroeconomic stability.
