The US dollar itself is on the decline globally – Bawumia on cedi stability

Dr. Mahamudu Bawumia, the former vice president, says the US dollar is declining globally. He noted that Zambia’s currency, the Kwacha, has gained value due to this decline.

Bawumia, a former NPP presidential candidate for 2024, dismissed claims that the NDC deserves credit for the cedi's recent gains.

During a discussion with the Young Executive Forum (YEF) in London, he explained that the US dollar's decline has strengthened other currencies. He used Zambia as an example of this trend.

Bawumia criticized the current government's spending habits. He stated they are not paying Independent Power Producers (IPPs) or contractors. This lack of spending reduces pressure on the currency.

He argued that the Mahama-led NDC government has not implemented any policies to improve currency performance. Bawumia challenged them to identify any effective policy they have enacted.

He pointed out that they only passed their budget in March and have not issued contracts or made payments since then. Therefore, he believes no policy can be credited for recent currency changes.

Bawumia also discussed gold's impact on Ghana's economy. He mentioned Ghana is Africa's largest gold producer and highlighted its reserves compared to those of other countries like the US and UK.

He emphasized that gold can be mined locally without needing exports for foreign exchange. In contrast, cocoa and timber require international sales for revenue.

Finally, Dr. Cassiel Ato Forson, the finance minister, stated that activities related to Goldbod will further strengthen the cedi’s performance.