Cedi appreciation is not a product of gold reserve accumulation – Sammy Gyamfi

Sammy Gyamfi, CEO of Goldbod, stated that the Ghana cedi's appreciation is not due to gold reserves.

He emphasized that the cedi continues to appreciate because of high forex liquidity. This liquidity comes mainly from unprecedented gold exports by Goldbod.

In a post on X, he wrote, “The appreciation of the Ghana cedi continues unabated.” He clarified that this is not from gold reserve accumulation.

Instead, it results from high forex liquidity and strict monetary policies by the Bank of Ghana. Fiscal consolidation by Ato Forson’s Ministry of Finance also plays a role.

Professor Godfred Bokpin, an economist at the University of Ghana, believes the New Patriotic Party (NPP) deserves some credit for cedi stability.

He noted that the Mahama-led NDC government continued some NPP policies. These policies contributed to the resilience of the cedi.

Bokpin explained that multiple factors affect the cedi's performance. However, he highlighted that previous NPP economic management had a significant impact.

In an interview with Citi FM, he said, “To some extent, the NPP should be given some credit.” He pointed out data showing GDP growth exceeded targets after December 2024 under an IMF program.

The growth rate was 5.7%, and international reserves were also strong. Bokpin added that efforts by Akufo-Addo’s government helped build foreign reserves for Mahama’s administration.

“Such policy continuity in managing foreign reserves has contributed to stability in the forex market,” he noted.