Member of Parliament for Bolgatanga Central and Chairman for the Finance Committee Isaac Adongo has questioned the basis upon which former vice President Dr. Mahamudu Bawumia is claiming credit for the recent appreciation of the cedi.
Speaking at the Young Executive Forum, YEF in London as part of his “Thank You Tour” of the UK, the former deputy BoG governor asserted the strength of the Ghana cedi is as a result of the “Gold for Reserves Programme” implemented by the Nana Addo administration which he championed.
Dr. Bawumia challenged the governing NDC to point to a single policy or measure implemented since the party took office which has led to the appreciation of the local currency against the major trading currencies.
“If you are to ask the NDC to point out exactly what policy they have implemented that has resulted in the appreciation of the cedi.
They cannot tell you one that has been implemented, not sort of talked about, but actually implemented, they cannot tell you one such policy.
“They only passed their budget in March. They’ve not even issued any contracts and paid for anything, pretty much.
“So you cannot ascribe what is happening to the currency to a policy that they have implemented.
The former NPP flagbearer rather insisted all the credit should go to the NPP government as a result of the gold purchasing policy.
“For me, we had anticipated the impact of gold on this economy. I talked about it when we got into dire straits in 2022, and I said that when you look at Ghana being the largest gold producer in Africa, our reserves of gold at that time was 8.7 tons.
“You look at the US, they have 8000 tons, and the UK has over 2000 tons. Same with France, and so it gives confidence in your currency,” He argued
But the Bolgatanga Central MP wonders how only the purchase of gold automatically transforms into gains for the Ghana Cedi. According to Adongo the tons of gold purchase by the previous administration were kept at the bank of Ghana as “ornaments”.
In a post of social media the board member of Ghana’s Central Bank questioned why the much talk about “Gold For Oil” and “Gold for Reserves” policies still could not make the local currency record the gains it is recording today?
“I hear the man who championed the gold for oil that took a litre of fuel to Ghc16 and a dollar to Ghc17 now says the cedi’s appreciation against the major trading currencies is because he left the Central Bank with a lot of gold as decorative ornaments.” He stated
Mr. Adongo rubbished the claim of the former Vice President arguing the Mahama administration is leveraging on the gold reserve to practically strengthen the cedi. Adongo described the 8 years of the Nana Addo administration as a waste.
“So who is better manager of foreign currency? The one who bought gold to decorate the central Bank with lack of forex liquidity pushing the dollar to Ghc17 and a litre of fuel to Ghc16 or the one who formalizes gold purchases and exports them to generate forex liquidity that appreciates the cedi at Ghc12.40 to the dollar and a litre of fuel at Ghc13. We wasted 8 years on emptiness.” The post concluded
The cedi is currently trading at Ghc 12.0940 and Ghc12.1061to the dollar at the interbank exchange rate
