NPP should be given some credit for cedi stability – Prof Bokpin

Professor Godfred Bokpin is an economist at the University of Ghana. He believes the New Patriotic Party (NPP) deserves credit for the stability of Ghana's cedi.

He noted that the Mahama-led NDC government continued some NPP policies. This continuity helped the cedi remain resilient. Bokpin emphasized that various factors affect the cedi's performance. However, he highlighted that post-election management by the NPP had a significant impact.

In an interview with Citi FM, Bokpin stated, “The NPP should be given some credit.” He referred to data after December 2024 under the IMF program. Most economic indicators were missed except for two: GDP growth and international reserves.

GDP growth was higher than expected at 5.7%. The previous Akufo-Addo government's Gold-for-Reserves policy boosted foreign reserves. This created a foundation for the Mahama administration to build upon. Bokpin said this policy continuity contributed to stability in the foreign exchange market.

In related news, Sammy Gyamfi, acting CEO of Goldbod, responded to Dr. Mahamudu Bawumia’s claims. Bawumia argued that the NDC cannot identify any policy aiding cedi appreciation. He rejected any notion that the NDC deserves credit for recent gains.

Gyamfi countered by listing three major policies from the Mahama government contributing to cedi appreciation. He mentioned stringent monetary policies and liquidity sterilization by the Bank of Ghana.

He also highlighted fiscal consolidation by the Ministry of Finance as crucial. This restored investor confidence through fiscal discipline and prudent management. Additionally, robust forex inflows came from gold purchases and exports, cocoa, and remittances.