'NDC has no policy behind cedi gains' - Bawumia dismisses opposition credit for currency stability

Former Vice President Dr. Mahamudu Bawumia has rejected claims that the NDC deserves credit for the cedi's recent gains.

The NPP 2024 flagbearer stated that the opposition party has not implemented any policies to improve the currency's performance.

During his Thank You Tour in London, he spoke with the Young Executive Forum (YEF). He challenged the basis of the NDC's claims about their influence on the cedi.

Dr. Bawumia asked if the NDC could name a specific policy that led to the cedi's appreciation. He asserted, “They cannot tell you one such policy.”

He noted that the NDC only recently passed its budget and hasn't executed any projects affecting currency value.

“They only passed their budget in March,” he explained. “They’ve not even issued contracts or made payments.”

He emphasized that no implemented policy from the NDC has impacted currency appreciation yet.

Dr. Bawumia credited current gains of the cedi to strategic policies from his time in government, particularly a gold purchase program.

He highlighted Ghana’s status as Africa’s largest gold producer and its impact on reserves. “Our reserves were 8.7 tons at that time,” he said.

He compared Ghana’s gold reserves to those of other countries like the US and UK, noting it builds confidence in currency.

Gold provides a domestic way to build reserves without needing exports, he explained.

“You just need to dig it or pay for it with cedis,” he added.

Through this program, he revealed, $5 billion worth of reserves were built up in two years.

“Remember, we went to the IMF for just $3 billion,” he said. “In two years, we bought $5 billion worth of gold.”

He pointed out that Ghana increased its gold reserves from 8.7 tons to 30 tons within two years.

“After 65 years of independence, they have not increased it by one ton,” he remarked about current leadership.

Dr. Bawumia also mentioned global currency trends as factors influencing exchange rates today.

“The US dollar is declining globally,” he noted, which has strengthened other currencies like Zambia’s Kwacha.

He attributed some temporary effects on the cedi to reduced spending by the NDC government.

“They are not paying IPPs or contractors,” he explained. “Less spending means less pressure on your currency.”

He concluded that programs like gold for oil were crucial in preventing economic collapse.

“If we hadn’t instituted these programs, our economy would have collapsed,” he stated firmly.

“What we put in place should help maintain stability in our currency moving forward.”